"major points are that they have added a new definition "Combined EBIT Income/Loss") and also changed (i.e. liberalized) the definition of what constitutes a maximum operation loss. From what I can tell, these changes prevent them from being in default of the loan.
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2. Amendments to Credit Agreement.
NEW: The following new definition shall be added to Article I of the Credit
Agreement:
"Combined EBIT Income" or "Combined EBIT Losses" means, for any period, Combined Net Income or Combined Net Loss, as the case may be, for such period, plus the sum of (a) interest expense and (b) income tax expense, which were deductible in determining Combined Net Income or Combined Net Loss for such period."
Kat, This didn't make any sense given the originating acronym is Earnings Before Interest and Taxes. What are we doing; double counting with the addback?
Well, the solution is: Had a chat with the Treasurer at MU (I suppose I can give you his name if you really want, but, he is understandably gun shy of of the internet maniacs.) The 10q comments are adjustments to the original agreement. Looks like shifting the definition from a net income position to EBIT and defining it (EBIT), so your search catch is actually good: better go long MU: good news: up.... bad news even better!
Regards, DWW |
