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Non-Tech : Boston Market (BOSTQ) -- Ignore unavailable to you. Want to Upgrade?

To: paul goldstein who wrote (1358)	6/20/1998 9:43:00 PM
From: Sr K	Respond to of 1567

<<i believe most of these loses are paper loses and not cash ones. remember, company has no real debt>> From the latest 10-Q: "based upon the trends in performance of the Boston Market system to date, the Company announced in a Form 8-K report filed May 27, 1998, that it may not remain in compliance with certain covenants contained in its senior credit facilities. If the Company is in violation of the senior credit facilities, upon action of the required number of lenders, the outstanding principal balances under the Company's revolving credit facility and other senior credit facilities, including master lease financing, which in the aggregate totaled $241.8 million as of April 19, 1998, may be accelerated. Any such acceleration would also permit holders of other senior and subordinated debt of the Company to exercise their remedies, which include acceleration of their debt which in the aggregate totaled approximately $619.3 million as of April 19, 1998 ..."

To: paul goldstein who wrote (1358)	6/21/1998 6:40:00 AM
From: PaperChase	Read Replies (1) \| Respond to of 1567

>>i believe most of these loses are paper loses and not cash ones. remember, company has no real debt. only bond debt that is payable over many years<< I believe you are looking at this situation from the wrong perspective. We know that cash flow was a negative $29 million last quarter. This was real cash losses from operations. (See my previous post.) If we assume that it will take time to turn around this ship, the cash burning will continue. When BOST can no longer raise cash from selling assets like ENBX where will the cash come from??? It doesn't matter if most of the debt is bond debt. What matters is where will BOST get the cash (after asset sales are exhausted) to fund continuing losses? Not more bond debt. Not more equity sales. Certainly not more bank debt. The key to this situation is too look keenly at cash flow in the next quarter to see if the cash burning can be slowed. The next 2 quarters are extremely critical to guaging whether accounting control of their restaurants is occurring. Personally, I believe that Boston Market's restaurants have evolved into a flawed concept and customer traffic will drop further. No amount of expense control can make up for this. If Dairy Queen went to the edge and back, then so can Boston Market. But Dairy Queen had to change their concept to regain their balance. So will Boston Market if it is to survive.