Disliked{quote} I agree that they're in a sticky situation (to put it lightly) but I don't believe there's this time bomb going off, this is a NYSE listed company. There must be more to it...Ignored
No there isn't, their regulator requires them to find 225Mn USD to meet their capital requirements, a rights issue is no longer a possibility as their company share price is down to a little over 1 dollar giving them a Market cap of 60 MN USD, I don't know what line of credit they have but I can assure you that their will be plenty of covenants in those also and they may well not be able to tap into that one either based on their share price as it stand currently.
That leaves 2 more options, find a buyer, again not very likely because any buyer can snap it up for less then 100Mn right now, that is again less than they need. They could try to find a buyer who will snap them up for 100Mn and extend them a line of credit to get them the 225Mn they need, that would rebound the share price and give someone a decent trade.
All in all this doesn't leave a whole heck of a lot of options.
I am glad I am not in their board room right now, they must be sweating bullets.
A contrarian; I always disagree.