RE:Earnings in a few days. 8c-12c per share at 12$ a lbFrom the Indenture on the 10.75% notes
Section 4.08 Limitation on Restricted Payments.
(a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries, directly or indirectly, to:
(1) declare or pay any dividend or make any distribution (whether made in cash,
securities or other property) on or in respect of its or any of its Restricted Subsidiaries’
Capital Stock (including any payment in connection with any merger, amalgamation,
arrangement or consolidation involving the Company or any of its Restricted Subsidiaries)
other than:
(A) dividends or distributions payable solely in Capital Stock of the
Company; and
(B) dividends or distributions by a Restricted Subsidiary of the
Company, so long as, in the case of any dividend or distribution payable on or in
respect of any Capital Stock of a Restricted Subsidiary of the Company that is not
a Wholly-Owned Restricted Subsidiary, the Company or any of its Restricted
Subsidiaries holding such Capital Stock receives at least its pro rata share of such
dividend or distribution; or
(2) purchase, redeem, retire or otherwise acquire for value, including in
connection with any merger, amalgamation, arrangement or consolidation, any Capital
Stock of the Company held by Persons other than the Company or any of its Restricted
Subsidiaries (other than in exchange for Capital Stock of the Company);
(all such payments and other actions referred to in clauses (1) and (2) (other than any
exception thereto) shall be referred to as a “Restricted Payment”) if in the immediately
preceding 12 month period prior to the date on which such Restricted Payment is being
made, the Company has satisfied any interest obligations by way of PIK Interest being
deferred and added to the principal amount of the outstanding Notes, Company shall not
be permitted to make such Restricted Payment.
The last paragraph in particular is very interesting. I interepret the bolded portion (my bolding) of this last paragraph to mean that in order for the company to make any Restricted payments the comany must first pay two consecutive interest payments in CASH, notwithstanding the conditions for Restricted payments in the Indenture for the 8.5% Notes of 2026. The next interest date on the 10.75% notes. Do your own due diligence as I am not a securities lawyer, just a holder of these notes.