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  1. #1
    Super Moderator no1mad's Avatar
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    Read a memo today

    Came out yesterday. Topic was about "recapitalization". Not quite sure what that is.

    It also made mention of media reports that the NYSE had suspended trading the Company's stock and was in the process of de-listing, which Company says is trying to "rectify the situation".

    Methinks I need to start updating my resume...

  2. #2
    Senior Member
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    I think you ought to do more than update your resume. Get it out there and start looking!
    -------

    Some sort of pithy irrelevant one-liner should go here.

  3. #3
    Ridin' South Cackalacky dahut's Avatar
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    Quote Originally Posted by no1mad View Post
    Came out yesterday. Topic was about "recapitalization". Not quite sure what that is.

    It also made mention of media reports that the NYSE had suspended trading the Company's stock and was in the process of de-listing, which Company says is trying to "rectify the situation".

    Methinks I need to start updating my resume...
    These days it should stay in a perpetual update status.
    "Watch out for giants; they are boorish fools with tongues wagging, drunk upon their own words.
    They will try to teach you a lesson if given the chance, and you will stumble over their stinking feet."

  4. #4
    Senior Member
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    I think you should read the first sticky on this forum in it's entirety.

  5. #5
    BF's Level 12 Wizard SingingSabre's Avatar
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    Good luck.
    Shameless plug (my sites):
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    Quote Originally Posted by Bklyn
    Obviously, the guy's like a 12th level white wizard or something. His mere presence is a danger to mortals.

  6. #6
    Wookie Fred chewybrian's Avatar
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    Quote Originally Posted by no1mad View Post
    Came out yesterday. Topic was about "recapitalization". Not quite sure what that is....
    Capitalization is the money invested in the company, both by bondholders and shareholders, including retained earnings. So, the need to 'recapitalize' just means the company wants more cash, for good or bad reasons.

    It could be a good thing, if your current business model is solid. If you can build and open new retail outlets that everyone thinks will generate a better return than the interest on bonds, that would be a good reason to 'recapitalize'. If that was true, the company could float new stock or debt offerings, and doing so would not knock them off the stock exchange.

    But, combined with the news of de-listing, it looks very bad. It looks like the current model is broken, and they want cash to pursue a different strategy that they think might work better. It sounds like the memo is trying to put a good spin on very bad news.
    Campione Del Mondo Immaginario

  7. #7
    Senior Member va_cyclist's Avatar
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    Translation: the company is broke and not making any money.

  8. #8
    Ridin' South Cackalacky dahut's Avatar
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    Quote Originally Posted by va_cyclist View Post
    Translation: the company is broke and not making any money.
    Which typically translates into cutting employees, their pay or their benefits.
    Or all three.
    "Watch out for giants; they are boorish fools with tongues wagging, drunk upon their own words.
    They will try to teach you a lesson if given the chance, and you will stumble over their stinking feet."

  9. #9
    Super Moderator no1mad's Avatar
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    Quote Originally Posted by chewybrian View Post
    Capitalization is the money invested in the company, both by bondholders and shareholders, including retained earnings. So, the need to 'recapitalize' just means the company wants more cash, for good or bad reasons.

    It could be a good thing, if your current business model is solid. If you can build and open new retail outlets that everyone thinks will generate a better return than the interest on bonds, that would be a good reason to 'recapitalize'. If that was true, the company could float new stock or debt offerings, and doing so would not knock them off the stock exchange.

    But, combined with the news of de-listing, it looks very bad. It looks like the current model is broken, and they want cash to pursue a different strategy that they think might work better. It sounds like the memo is trying to put a good spin on very bad news.
    Pretty much what my initial gut feeling was.

  10. #10
    Super Moderator no1mad's Avatar
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    Quote Originally Posted by va_cyclist View Post
    Translation: the company is broke and not making any money.
    Quote Originally Posted by dahut View Post
    Which typically translates into cutting employees, their pay or their benefits.
    Or all three.
    The memo also stated that the Company had reached a Forebearance Agreement with a "majority of the senior note holders" that is extendable by written agreement by both parties. The Company got out of paying some $40+ million in P&I this month alone.

    Wage/bonus freeze for the past 2 years, RIF's been on-going for like the last 18 months, core benefits haven't wavered too much.

  11. #11
    Senior Member jdon's Avatar
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    Good luck no1mad.

    My employer is merging with another company in December. At a town hall the incoming CEO stated "if your department isn't a profit center, you will be gone". My department operates under "shared services" so I am polishing up my resume as well.

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