He's partially correct - one of the largest distributors to the warehouse clubs filed Chapter 11 reorganization. However, what he "forgot" to mention was, and I quote from the filings:
"AMS has secured $75 million debtor-in-possession financing from Wells Fargo Foothill and as a result the Company continues to do business with AMS, with lower risk credit terms including partial payment in advance of each shipment and full payment shortly thereafter."
So this customer.....is still alive, well, and still their customer. Kind of like when Kmart reorganized -- it's still alive, well, and still the biggest customer of Martha Stewart's line. In short, what Billg33 "forgot" to mention was that the Chapter 11 of that customer has almost no effect on TRDY, except, at worst:
"As of December 31, 2006, the Company had outstanding receivables from AMS of approximately $251,000. Based on the information currently available the Company believes its reserves are sufficient to cover any reduction in receivables that may result from any bankruptcy settlement."
$251,000? "Some" of this may be reduced?
Boo hoo, dude. Boo hoo :)
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