Post by Soyousayon Dec 04, 2018 2:54pm
307 Views
Post# 29063155
Getting their house in order...
Getting their house in order...Somewhere along the lines things came off the rails. They are now having to restate financials due to bad debts and inablity to collect receivables. One can look at this as them getting themselves back to the beginning and removing the financial overhang. They have also closed one or more clinics in AZ in the last couple of weeks. So they will take a hit there on severence and winding down those operations. One can look at this as them triming the non-producing operations and going with those that are more in-network and dumping those that got them into this mess in the first place. They also have a new CFO who is helping to get things back on track. There is the $127M in debt that they have which is also an overhang and they have to have a plan to the banks within the next couple of weeks on how to address that. I suspect all of the above is part of that plan. I doubt BK is in the cards. And I suspect all the bad news is already priced in.
So what matters really now is how they communicate this "re-structuring" in the coming weeks to the market, and if it instills any confidence in their future.
I have a sizeable holding in these guys. I hope they can right this ship. I supsect they will. But the markets these days are unforgiveable when it comes to having patience.