Replies to post #9076 on Pinnacle Business Management (Prev SRCI)

[BullNBear52]

2 choices, restructure it outside of BK or....

[lizdrucker]

lownumba, they are stating ...

... in the 8-K that they can service the debt and still have free cash flow, as long as they are left alone for 90-120 days, in order to stabilize the corporate framework and see the results of cutting the deadwood out of the structure.

I was impressed with the warnings. They didn't look like boilerplate, so much as a sincere statement from a new management team indicating that they don't have a complete handle on the size of the problem, but believe the corporate cashflow/assets can support and grow it ...

... if they get the time.

[lizdrucker]

lownumba, the 3 billion ...

... debt has an offsetting 360+-million cash setaside mentioned in the 8K. The company refers to it as funds frozen or locked up - the money apparently is impounded by a court action somewhere, and is there for the debt/bond payment they missed last quarter.

It shows as part of the 650 million cash in projections for the 12 months.

Apparently the company feels that left alone, they can service the current portion of debt from current operations, and have the past due 'payment' (the $360+- million) in "escrow" awaiting some form of permission to make the payment.

That's what it sounds like in the 8-K, anyways.