"The appropriateness of reporting on the going concern basis is dependent upon, among other things, confirmation of the Plan, future operations, and the ability to generate sufficient cash from operations and financing sources to meet obligations".
This is regarding the Chapter 11 filing, they emphasize the importance of cash flow, yet when management comments on current operations they state: " The Company's strategy is not to pursue analog-based television subscriber growth while it evaluates its business opportunities in addition to subscription television including high-speed Internet and Intranet access, as well as digital video and telephony services. The policy has had a negative impact
on the Company's subscription revenues. As of June 30, 1998, the Company's subscriber base had decreased by approximately 16,600 to 49,100 subscribers from approximately 65,700 at June 30, 1997. Consequently, subscriber revenues decreased $2,042,000 for the quarter ended June 30, 1998 compared to the corresponding period last year.
So, they acknowledge the requirement of obtaining sufficient revenues in order for the company to survive post Chapter 11. At the same time they admit that they have allowed the analog business to slip away without any effort to keep such revenues that the company desperately needs to survive pre Chapter 11. A deliberate attempt to destroy the company so that they can extinguish all the stockholders. Simple calculations using Caws figures, and applied to existing analog subscribers indicates that the customers that they were dismissing were paying over $41.00 per month for analog service. When you are fighting for survival, management must make every effort to hold on to its customers and actively pursue new ones. They have a duty to the stockholders under the law to do this. Yet it was not in the interest of this management to continue the companies operations pre Chapter 11 and this has not been their goal all along. Extinguish, and make a fortune at the stockholders expense, that is their goal. If they were not interested in pursuing business for the benefit of both stockholders and debt holders alike, the management team was under an obligation to step aside. Why read the rest of the filing, just these simple points tell it all. |
