Altman Bankruptcy Predictor Analysis - HLX
Halter Marine Group Inc. (NYSE:HLX)
#reply-8438065
3/31/98, Z = 2.84, In Danger
12/31/98, Z = 2.32, In Danger
From the latest Q...
<<Liquidity and Sources of Capital
The Company's needs for capital for the nine months ended December 31, 1998 resulted primarily from the acquisition of fixed assets and increased working capital requirements as a result of the Company's growth. Additionally, during the first quarter the Company acquired a shipyard facility in Orange, Texas. These needs were primarily funded with cash on hand and funds borrowed under the Company's revolving credit facility. The Company believes that cash flows from operations, cash on hand, and funds available under the revolving credit facility will be sufficient to fund its requirements for working capital, capital expenditures, and other capital needs for at least the next twelve months. As of December 31, 1998, the Company was in violation of three restrictive financial covenants under its revolving credit facility. A waiver of these violations as of December 31, 1998 was received from the group of banks. The waiver is effective through March 12, 1999. As of this report date, the Company was in the final stages of renegotiating the terms and conditions of the credit facility, including the financial covenants. The Company believes it will be able to satisfactorily renegotiate the terms and conditions of the debt during March 1999. As of this report date, the Company had approximately $22.0 million in funds available from cash on hand and funds available under the existing revolving credit facility. See Note 6 for additional information regarding the revolving credit facility.>>
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