If anyone is interested, the CFO of CD Radio resigned on Friday.
biz.yahoo.com
It may just be that he had a better opportunity, it's been known to happen. The fact that he actually had another job when he quit increases the chances of that being true ;-).
The company also changed auditors earlier this year, apparently because they were audacious enough to include a "going concern" warning in their signoff on last year's annual report. Once again, this could have simply been an honest disagreement, and does not necessarily imply anything sinister. However, when these events occur within a few months of each other it picques one's interest.
Mr. Greenebaum does leave CD Radio at an interesting time. The company has stated that they will run out of cash in the first quarter of next year if they don't raise more money. Presumably this happens when payments are due after the first satellite launch. Meanwhile, the amounts they project that they need to raise over the next two years rose sharply in their latest filing. In the S-4 dated 7/2/99, the additional amounts they thought they would need were as follows:
Through 12/00: $138 Million
Through 12/01: $100 Million
However, in the 10-Q dated 8/12/99, the estimates were:
Through 12/00: $170 Million
Through 12/01: $150 Million
One final point of interest. One of the holders of CDRD bonds is none other than Leon Black, formerly of Drexel Burnham, and no stranger to creative restructurings of companies in distress. This will be an interesting one to watch as we discover whether I'm a genius or an idiot for shorting this stock.
Hint: The answer may be "all of the above" <g> |
