Eventhough there is the complex situation with regards to the many subs the company has and the complex accounting that goes along with this, it is unclear at this point in my mind that SCRA would need a large "Exit Facility" to emerge from bk. The company did enter into DIP financing in July of 2007 which effectivly reworked the terms of the obligations that they had to Wachovia and other banks. This DIP financing was in the amount of $170 Million total of which $145 million was used to repay indebtedness by two subs to Wachovia and others, and another $25 Million as a revolving credit facility of which at Nov. 2007 no money's had been drawn from this amount. At the end of Nov. 2007, I believe the company has approx $46 Million cash on hand with the additional $25 million unused credit facility to draw from.
At this point in time, it is hard for me to see how much, if at all, of an exit facility the company would need. That said, I think we would need to see what obligations are left to Bond holders. Hard for me to see/find/assess this at this point.
I understand what finbar99 is saying with regards to access to financing given the "credit crunch" that is ongoing. However, I think it would be heplful to the board if we can better understand the other obligations (bondholders, etc) that the company has in order to see what we may be up against going forward with respect to exit financing or the lack of need for this going forward.
Any thoughts or DD would be appreciated.
Good luck
prls
