LodgeNet Interactive Corp.(fka LNETQ)

[Stockexpertpro]

LNET BK Bounce Chart has 2 gaps to fill one at .15 and the other up in the .30s traded over half the float in a very tight trading range past 2 days with huge bidders once the bounce begins should be explosive to the upside

[richrichrich]

Well, for any of you that are hanging in there, until you get the official chapter 11 notice in the mail(which is likely), there is one small part that offers a glimmer of hope:

"Closing of the transaction is subject to various closing conditions, including Bankruptcy Court confirmation of a Chapter 11 Plan. Accordingly, no assurances can be given that the transaction will be consummated."

You never know......Maybe the deal falls through, or some judge won't allow them to proceed.....Or it gets delayed somehow, causing the PPS to rise a smidgin one more time......

I've been through others in the past, and rode them to the end. Bombay furniture, Canargo energy, US shipping partners, to name a few.....

They all go "piff" eventually, and just exit your account as zero share value. So at least I got "something" out of this one, even though my $7.95 Fidelity fee for selling it, ate into the sale heavily......

Good luck to all.....

[DAD2]

no share value either tax loss = 100%

[airbus300]

Everything is going to be great (except we are going to screw the shareholders).

Pursuant to the contemplated Chapter 11 filing, holders of the existing Series B Preferred Stock and common stock issued by LodgeNet Interactive will have their interests cancelled and will not receive any distributions.

The recapitalization is designed to enable a restructured LodgeNet Interactive to emerge from Chapter 11 on a standalone basis with strong cash flow and a solid balance sheet.

Key terms of the recapitalization include:

The Colony Syndicate will invest $60 million in exchange for all of the new shares of common stock of LodgeNet Interactive;
LodgeNet's existing Credit Agreement will be amended to provide an extension in the form of a 5-year term loan in an aggregate amount equal to (i) $346.4 million plus (ii) the amount of accrued and unpaid interest that was capitalized prior to the Closing Date;
Based on the terms of the recently executed memorandum of understanding between Colony and DIRECTV, LodgeNet and DIRECTV will enter into a new agreement pursuant to which they will work under an expanded new strategic partnership, far exceeding the scope of the parties' current free-to-guest programming agreement, to include DIRECTV branding, programming and content, advertising, and support across all facets of operations, infrastructure and technology. This strategic partnership is expected to enhance the experience for new and existing hotel and healthcare customers, improve service capabilities and provide additional promotional options that will reduce or eliminate capital requirements within the industry.

Closing of the transaction is subject to various closing conditions, including Bankruptcy Court confirmation of a Chapter 11 Plan. Accordingly, no assurances can be given that the transaction will be consummated.

Miller Buckfire & Co. LLC, a wholly-owned subsidiary of Stifel Financial Corp., FTI Consulting, Inc. and Moorgate Securities LLC served as financial advisors to LodgeNet, Weil, Gotshal & Manges LLP acted as restructuring legal counsel and Leonard, Street and Deinard acted as corporate legal counsel to the Company. Guggenheim Securities, LLC served as financial advisor to Colony Capital, and Liner Grode Stein Yankelevitz Sunshine Regenstreif & Taylor LLP and Sullivan & Cromwell LLP provided legal counsel. Akin Gump Strauss Hauer & Feld LLP and CDG Group, LLC acted as advisors to the agent for the lenders.

About LodgeNet

[richrichrich]

Yes. Snooze, you lose. There was a short period I could have sold mine, for a meager profit. Today I dumped it for a hideous loss, rather than a TOTAL loss......My luck, someone will now swoop in and save them from bankruptcy, raising the PPS to a dollar......

[TyTrades]

Damn, LNET had a nice run last year then a complete dump...bummer for those who lost here

[richrichrich]

Dumped......at .05......Such swines......Move on......

[richrichrich]

10-4. Thanks.

[CowBoE]

With clear announcement on cancelling existing common shares, it's only going to erode down until it's cancelled.

I'd say sell it today so that you can write off on tax this year.

Sooner you sell will be better as it'll probably tank harder towards closing today.

[richrichrich]

Do I sell today, and take a brutal hit?
They really don't state a timeframe, for the chap 11 process......
It's only a tiny investment here. But a roughly 6 to 1 loss for me, right now......
Decisions, decisions.....

[richrichrich]

So, no bankruptcy, at least not immediately.....
Why then the "dip"?
Was that just people bailing hurriedly, worried about bankruptcy news?
No comprende.......

[CowBoE]

Going to zero! Another bites the dust.

[JL1585]

On watch...

[Pennybuster]

BK

[JMC]

Pursuant to the contemplated Chapter 11 filing, holders of the existing Series B Preferred Stock and common stock issued by LodgeNet Interactive will have their interests cancelled and will not receive any distributions.

http://finance.yahoo.com/news/lodgenet-agrees-60-million-recapitalization-140000861.html

[Pro-Life]

From AB: http://americanbulls.com/StockPage.asp?CompanyTicker=LNET&MarketTicker=NASD&Typ=S

[Bennieke]

Sold at 0.1069. Nice up from yesterday noon.

Very volatile, with a bit more than average volume.

Will drop back in very short term.

[roofingisawesome]

Me too! I was so disappointed to see the news; will look for what kind of action we have here tomorrow.

[bigfish1972]

Bought this pos last week and held over the weekend. What a lovely surprise to wake up to this morning. Yuck.

[tradethetape]

8-k out BK imminent. Owe Direct TV 20 mil and HBO 6 mil, none of which they have.

FYI

[zendeli]

News > Schweiz Markt >
21:01:18
29-11-2012 22:22 TEXT-S&P cuts LodgeNet Interactive corp credit to 'CC'
(The following statement was released by the rating agency) Overview

-- U.S.-based in-room entertainment and data services provider LodgeNet is in negotiations with its lenders regarding restructuring options.

-- We are lowering our corporate credit rating on LodgeNet two notches to 'CC' from 'CCC'.

-- The negative rating outlook reflects our view that the company will likely default over the very near term.

Rating Action On Nov. 29, 2012, Standard & Poor's Ratings Services lowered its corporate credit rating on LodgeNet Interactive Corp. to 'CC' from 'CCC'. The rating outlook is negative.

The downgrade follows the company's disclosure that it is negotiating with its lenders and third parties regarding restructuring options, which may include a filing under Chapter 11. As of Sept. 30, 2012, the company was in violation of the 4.0x net leverage covenant in its credit facility. The company entered a forbearance agreement in October 2012 in which lenders agreed not to exercise their default-related rights and remedies through Dec. 17, 2012. The company has classified its debt due April 2014 as current on its balance sheet, as lenders could require payment of amounts outstanding on Dec. 17, 2012. These liquidity constraints and the covenant breach have resulted in substantial doubt about the company's ability to continue as a going concern.

Rationale We view LodgeNet's business risk profile as 'vulnerable,' because of negative secular trends at its guest entertainment business. We view LodgeNet's financial risk profile as 'highly leveraged' (based on our criteria) because of our expectation that the company could default over the very near term.

LodgeNet is a provider of in-room entertainment and data services to hotels. Its operating results are subject to trends in consumer and corporate travel; the discretionary nature of traveler purchases; the unpredictable success of movies, which generate the majority of room revenue; and consumers' changing habits in accessing entertainment. We believe that increases in broadband access (complimentary or fee-based) in hotel rooms, along with growing usage of portable devices, will continue to reduce demand for LodgeNet's core on-demand movie services. Higher-margin guest entertainment revenue (about half of revenue) remains under secular pressure as a result of the increased penetration of broadband and high-speed cellular networks, combined with a shift by consumers to viewing more content online.

In July 2012, the company withdrew its financial guidance for 2012, reflecting limited visibility for the remainder of the year. Under our base-case scenario, we expect operating performance to remain under pressure for the remainder of 2012 and 2013 because of continued pressure on guest entertainment revenue and a decline in the number of rooms served. We expect revenue to decline at a low-double-digit percent rate and EBITDA to decrease by slightly more than 25% in 2012 and 2013. We believe that guest entertainment revenue per room will continue to decline at a mid-double-digit percentage rate with consumers continuing to shift to various entertainment alternatives. We expect the decline in rooms served to continue at a low-double-digit percent rate.

In the third quarter of 2012, revenue and EBITDA declined 15% and 29%, respectively, largely due to a decline in higher-margin guest entertainment revenue, which fell because of a 12% decline in the average number of guest entertainment rooms served and a 14% decline in guest entertainment revenue per room. Guest entertainment revenues are declining at an accelerating rate, with a drop of 24% in the third quarter of 2012. The EBITDA margin declined to 21% for the 12 months ended Sept. 30, 2012 versus 24% for the prior 12 months due to a high proportion of fixed costs. We expect the company's EBITDA margin will contract to roughly 21% in 2012 and 19% in 2013, with cost cuts being more than offset by revenue declines.

Lease-adjusted debt leverage (including preferred stock) increased to 5.0x for the 12 months ended Sept. 30, 2012 from 4.0x over the prior 12 months as debt reduction was offset by weaker operating performance. EBITDA coverage of interest (including the preferred dividend) decreased slightly to 2.5x from 2.7x over the same period. We associate leverage above 5x with a highly leveraged financial profile, based on our criteria.

LodgeNet's conversion of EBITDA into discretionary cash flow fell to 32% in the 12 months ended Sept. 30, 2012, from 40% a year earlier, despite an increase in accounts payable resulting from delaying certain payments to major programming suppliers DirecTV and HBO, because of weaker profitability and higher capital spending. Capital spending as a percentage of EBITDA increased to 46% from 23% over the same period. We believe the conversion rate of EBITDA to discretionary cash flow could decline to roughly 20% for the full year 2012.

Liquidity

LodgeNet has 'weak' sources of liquidity to cover its needs over the next 12 months because the company is subject to a forbearance agreement, as it was not in compliance with its net leverage covenant as of Sept. 30. 2012, and it does not have access to additional borrowings under its revolving credit facility. Our view of the company's liquidity profile incorporates the following expectations and assumptions:

-- We expect that the company's sources of liquidity over the next 12-18 months will exceed its uses by 1.2x or more.

-- We believe that the company will not be able to absorb low-probability shocks.

-- We do not believe that the company has a good standing in the credit markets.

Liquidity sources are limited to $18.7 million in cash balances as of Sept. 30. At Sept. 30, 2012, $21 million was outstanding under the revolving credit facility due April 2013, and no additional borrowings are permitted.

The leverage ratio, as defined in the company's credit agreement, increased from 3.76x as of June 30, 2012 to 4.52x as of Sept. 30, 2012, which was above the maximum allowable ratio of 4.0x. Effective Sept. 30, 2012, under the forbearance agreement that expires Dec. 17, 2012, the pricing of the term loan and revolver increased an additional 200 basis points, resulting in roughly $7 million in additional annual interest. Outlook

The negative outlook reflects our view that the company will likely default over the near term due to strained liquidity and an unfavorable operating outlook. We regard a near-term revision of the outlook to stable or upgrade as remote scenarios that would require improvement in operating performance and restoration of a healthy margin of compliance with financial covenants, none of which appears probable.

Related Criteria And Research

-- Criteria For Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings, Oct. 1, 2012

-- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012

-- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011

-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

-- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008

-- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008

Ratings List Downgraded

To From LodgeNet Interactive Corp.

Corporate Credit Rating CC/Negative/-- CCC/Negative/--

Downgraded; Recovery Remains Unchanged

LodgeNet Interactive Corp.

Senior Secured CC CCC

Recovery Rating 3 3

Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.

(New York Ratings Team)

(e-mail: [e-mail]; Reuters Messaging: [e-mail]; Tel:[phone];)

COPYRIGHT

Copyright Thomson Reuters 2012. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

[IzY]

It´s loks like it wants to trend upward, the breakout is imminent to me if it manage to cross the 20MA at 0,25cents.

How are you guys reasoning?

IzY

[T.I.N.A.]

I'm out today. Was a good ride! Glta

[Yak]

Yea, after yesterday's debacle with the PR fraud involving ICOA hopefully the SEC is on high alert with POS pinks! People are fed up with being conned and robbed. Good luck bro, let me know how it goes.

See ya

[KaiserSoze]

SeeYa, FYI I filed an official complaint on Shivus with the S.E.C. Let's see if they even respond.

[zendeli]

Time to SELL conso...

[twoggle]

LodgeNet in Financial Times of London. I apologize if this has been posted already, but I saw this article about LodgeNet, potential funding or buyout info on ft.com and I thought I'd pass it along:

http://on.ft.com/XC6GWP
Or
http://www.ft.com/cms/s/2/650575e2-3402-11e2-8270-00144feabdc0.html#axzz2DP3HtSKL

[roofingisawesome]

Good consolidation day. Upward!

[day_traitor]

wrong symbol i think mate

[SharpestGeorge]

You were way off on that prediction.

[Pennybuster]

This is fun on the bounces but i'm pretty certain BK is on the way.

[stockjock31]

Doesn't look like an up trend

[WallStreetMyWay]

I Feel Good about the Stock, Up Trend!

[$tockfather]

Thanks UP Trend, glad you were able to bank some $$$$ on the ride up...

Nailed b2b #1 percentage gainers on the Nasdaq this week, hopefully this hot streak continues...

CCCL- http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=23057&srchyr=2012&SearchStr=cccl

Best,
$F

[IzY]

Not yet, watched it pass my target at 18cent, didnt have any order in then.

IzY

[T.I.N.A.]

did you get back in? .....or still watching?

[Vick1]

Owners sold out. Look at the SEC filings on 14th. I think hedgies and pumpers created stir and got pps up and sold part of their positions.

I mean why would owners sell shares if there were confident.

[T.I.N.A.]

just got more....will pick up more if it drops some more but this looks like a good pullback level to add to...

[IzY]

If it turns red, 0,18 is the first target of a catch.
And as it is half day, there might be some selling pressure at the end for those who didnt take any profits on this 2 day run..


Watching closely.

IzY

[TFALL68]

I guess this is one of those tickers u buy not knowing why ur account is getting greener but it does and will$$$$$

[T.I.N.A.]

and still so thin!!

[IzY]

Out at 28cents, will wait for a small breather if there is one.

IzY

[T.I.N.A.]

wow great volume so far today, looking good!!

[Yak]

You got that right brotha! I will keep my ear to the ground and my feelers out there! That company, CEO, and group is a joke, but perhaps a good lotto ticket. I mean if this piece the way they've spent money can move the way it did who knows. Good luck buddy, see you on the other side! lol

[roofingisawesome]

LNET trades after hours....LINK
http://www.nasdaq.com/symbol/algn/after-hours

[day_traitor]

LNET will this gap big ?? penny experts say cause its a nasdaq ? I thought you cannot trade sub 1$ pre market, is this true ?

http://blog.todayspickis.com/2012/11/22/stocks-to-watch-half-day-11-23-12---elay-osgiq-lnet-ctle-slio.aspx

[WallStreetMyWay]

Yeah Nice Work!

[UP Trend]

StockFather definitely alerted this way before, thats how I noticed this one. Thx again for the heads up! Been noticing you have been on fire lately with your calls. Keep up the good work!

[1plus1]

fri lnet will close @ .32 cents

[SharpestGeorge]

Any prediction for Friday?