Current obligation of GX in light of EXDS's chapter 11 filing is about $170M, 70M in lease obligation, $100M in network usage. I took a look at EXDS's last quarterly report, they had about $300M revenue, 68% of revenue went to cost of service revenue (lease payment probably was in there), 25% (G&A), 19% (Marketing and Sales), 1% (product devl), 24% (Interest), 36% (Amortization, depreciation, Goodwill), and then a huge cost on merger restructuring and impairment (some 100%+ of revenue).
I add up SG&A, interest and cost of service revenue and end up with about 140% of revenue. It is concievable for creditors to receive $0.60 to $0.70 to a dollar while EXDS is working towards restructuring and profitability. Creditors may incline to agree to that scenario rather than demanding liquidation. So, GX can receive $102m to $119M of the total $170M obligation. Immaterial if you ask me. |
