RE:RE:RE:Will hit 50 cents within the next 30 days A/P is debt but also part of WC and Cash, A/R and Inventory added up and A/P is deducted.
In the case of SPG: A/R + Inventory = 71.2mm. A/P = 46.7. WC is a +24.5mm.
They need to better manage A/R for sure but what they really need to do is get rid of a crapload of SG+A...they have an ambitous plan to reduce about 10mm and they best meet that target. I think there is a ton of fat at head office that needs to be cut.
We will see if the new CEO and CFO can 1) avoid accounting issues and 2) cut costs substantially to recreate margins as they were.
As for BMO, of course this is in special loans and paying a fee for a covenant waiver is common. Did anyone think BMO was going to ask for the key for an operating business? Regardless, if BMO was seriously concerned, they would have forced part of two equity raises to reduce the TL. They seem to have a fair bit of room on their ABL.