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Non-Tech : FGCI --- Family Golf, Tiger Woods, Etc. --- For Long Only
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To: DENNIS TULLY who wrote (98)8/15/1999 2:29:00 AM
From: Sword  Read Replies (1) of 101
 
This company is teetering on bankruptcy.

If such covenants are not successfully renegotiated, the payment of the $98.2 million outstanding under the Credit Facility and substantially all other indebtedness of the Company could be declared immediately due and payable. In this event, the Company would likely file a voluntary petition seeking protection under the bankruptcy laws.

The Company does not have adequate working capital to meet its current obligations, including principal debt repayments of $6.1 million due October 5, 1999 (after giving effect to a recently obtained waiver) and up to $2.8 million due September 30, 1999. It also lacks the capital to meet substantial construction commitments.

I suggest that it is not the time to "average down" but to bail. In a BK, the common stockholders will get nothing or very close to it. Bondholders have first rights.

-Sword
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