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Technology Stocks : K-Tel (KTEL) Have the cheesy '70s records come to an end? -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (2718)	11/17/1998 8:12:00 PM
From: tool dude	Read Replies (1) \| Respond to of 3203

are we getting nervvvvvvvvvvous

To: Anthony@Pacific who wrote (2718)	11/17/1998 8:28:00 PM
From: Tom Hua	Read Replies (3) \| Respond to of 3203

From 10Q filed today. Total shareholders equity: $912,200, or $0.11/share. Revenue generated from K-tel Express through September 30, 1998 has not been material. ........ As of September 30, 1998, $4,000,000 was outstanding under the term loan and $5,146,000 was outstanding under the line of credit and the maximum additional available under the borrowing limitations at that date was $72,742. The Company was either in compliance with or had obtained waivers for all covenants, limitations and restrictions. The Company has amended certain financial covenants with the lender for fiscal 1999 and beyond, and expects to be out of compliance with the tangible net requirement until the Company achieves the necessary level of profitable operations, obtains an equity infusion or further modifies the covenants. As such, the Company has reclassified its $4 million term loan to current as of September 30, 1998. Future losses from businesses such as K-tel Express or the inability to complete an equity placement may result in further renegotiations of such covenants or the need to seek replacement financing. There can be no assurances that such financing will be available on terms satisfactory to the Company. ............ In accordance with the agreement, the Company is required to make guaranteed monthly payments totaling $900,000 over the initial two year contract term that will be used to offset royalties to Playboy Enterprises, Inc.