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Microcap & Penny Stocks : ABTX - Agribiotech -- Ignore unavailable to you. Want to Upgrade?

To: vestor who wrote (8190)	10/1/1999 12:24:00 PM
From: W Shakespeare	Read Replies (1) \| Respond to of 8359

I'm referring to the recent press releases by ABTX, its recent SEC filing and the reduction in the company's credit rating by S&P (from single B to B-): "In addition, the Company provided an update on its long-term debt financing plans and activities. "We are pleased with ABT's current discussions with potential lenders. However, the appraisals of real estate, machinery and equipment are taking longer than anticipated. We expect the commitment to be finalized shortly, with the funding completed in late October or early November," Budd said." From the recent SEC filing: As of September 24, 1999, we had borrowed approximately $60 million under the revolving credit facility and approximately $6 million was available to be borrowed. In addition, we have outstanding approximately $17 million of other long-term obligations. The annual debt service requirements, including scheduled debt repayments and interest, on this debt total approximately $11 million, reflecting anticipated average borrowings under our revolving credit facility. Weaknesses in the agricultural economy and the bankruptcy of a major customer (Hechinger Co.) have negatively impacted availability under our revolving credit facility. It is possible that we may not have sufficient funds in the future to meet our obligations under the revolving credit facility and other indebtedness. We are currently exploring financing alternatives, including leveraging real estate assets that are not now encumbered, to supplement, or possibly replace, our current revolving credit facilities. It is also possible we may issue additional equity to fund operations. ABT is in the due diligence process with undisclosed major financial institutions for an asset-based long-term debt financing that is expected to close by late October or early November 1999. There was also an article in the Wall Street Journal yesterday about how many smaller companies are having trouble getting financing. I think it prudent to be cautious with the stock until its finances are put in order. The company is at a critical juncture since it needs money to buy its inventory now. The failure to secure proper financing at a reasonable rate could cripple the company. I would find it very distressing if the company would need to issue more stock at this rock bottom price in order to finance continuing operations. I still believe that ABTX has an excellent future, IF it can secure an adequate financial structure.