Couple of interesting things in the 10Q.
First we already knew the numbers as they put those out a few days ago.
However, did anybody notice the entire first section dedicated to why we're going BK? Hmmmmmmm.....wonder why CEO HUSSEY feels he needs to justify the BK? Is he getting lots of calls and emails from common shareholders (or reporters) asking why he told us all is good and at the same time was working on a BK restructure?..... maybe some big institutional owners that will blackball SPC if they get screwed? Maybe he felt he needed to recreate historical information after he recently told shareholders there is more than enough cash flow and he has no idea why the pps was down? Hmmmmm.....I think this restructure has been cooking for awhile and maybe HUSSEY and IR forgot that public comments can be used in court?
Oh and the usual disclaimer about this BK is NOT official and MAY NOT be approved, in which case, commons would remain intact.
But more interesting was the use of the term "default event." I've worked for an organization that had a loan go into default. There are usually a series of items (payment, net profit, inventory , etc) that may trigger a default. I suppose those could be "default events", but the loan is NOT in default until the lender says so in an official letter to you.
Anybody here see a letter to Spectrum from a lender saying they are officially in default? Sometimes if you hit a default trigger, it can be corrected or the loan can be renegotiated before it is officially in default. I'm guessing there is NO official default and that HUSSEY is trying to take the easy path and the path that protects his $2 million bonus. I think the judge might want to know if the bank initiated the default or if HUSSEY created it to facilitate a BK?
All of this will come out. HUSSEY is hoping the economic conditions will allow this to go through without anyone asking questions. However, maybe Congress and MAIN STREET is fed up with corporate CEO greed!!!!
This BK is NOT a done deal and if it was you wouldn't see HUSSEY selling it so hard in the 10Q.
