Yahoo post re response from IR:
*** JUST SPOKE WITH IR ABOUT ARTICLE***
by: voices_of_reason (39/M/New York, NY) 90059 of 90068
Just hung up the phone with IR at IDT. Was very reassured with the response I got -- they are working late. TSCM article is much ado about nothing.....
Here is the synopsis:
1) Lermer Overseas Telecom very much exists.
2) Lermer has several subsisidiaries, who together with the parent are all on the hook for the loan.
3) All subsidiaries are current in state/federal filings.
4) Lapse by Lermer parent co. to file State franchise filings is simply an oversight, correctable within a matter of days/weeks for no more than a few hundred dollars (some big exposure there).
5)BT Alex Brown, CIBC, Lehman all underwrote a $150 mm credit facility and did their own diligence on IDT and Lermer and were perfectly satisfied -- after all, these banks put their own reputations on the line when they underwrite these things, because they syndicate out to other banks who rely implicitly on their diligence.
6) IDT's auditors, Ernst & Young, are comfortable with the loan to Lermer.
7) NTOP bankers and private investors did their own diligence on IDT, they too were satisfied with all aspects of IDT's business -- and left no stones unturned.
8) Loan has been reduced over the last two quarters by regular paydowns of principal and interest, current balance is under $22 mm.
9) IDT has been doing business with Lermer for many years, and gets regular monthly financials from them.
10) relationship is very beneficial to IDT and IDT's return from the loan is FAR in excess of the 6% (yes 6%, not 5%) interest that they charge.
11) Lermer has an exclusive with IDT - IDT is Lermer's only customer, so that all monies loaned by IDT directly benefit IDT.
Just some real reassurance for all us longs.
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