To: Anthony@Pacific who wrote (13673 ) 2/23/1999 7:48:00 AM From: Gary Stover Respond to of 122087
By Herb Greenberg Senior Columnist 2/23/99 6:31 AM ET Terrible Tuesday: Un-Able to avoid controversy -- an update in the long-running Able saga: In chapter one of the Able Telecom (ABTEE:Nasdaq) saga, first reported here last July, this column mentioned (as it often does) that any time a company is routinely late with its SEC filings and has a revolving door of top execs and auditors -- no matter what the excuse -- it's time to worry. That pretty much described Able. Since then, Able's plot has become thicker than ever, with more exec turmoil and more delayed SEC filings -- the latest, its 10-K, was delayed as the company wrestled with its auditors. All this from a company that historically has been little more than a ditch digger for telecommunications companies. Then, last year, it bought a unit from MCI WorldCom (WCOM:Nasdaq) that builds telecommunications systems, overnight boosting its revs by more than 400%. After the purchase, the unit's top officers quit, and in recent months the unit has been at the center of a controversy regarding its ability to build a "fast pass" system for New Jersey's Garden State Parkway. As a result of the growth, Able's finances have been a mess. Defaults and other alleged issues have kept the company busy trying to raise cash. Manuel Asensio, a longtime Able foe who isn't shy about using the word "fraud," does just that in a Monday press release denouncing Able. In his release, Asensio charges that Able's press release regarding a proposed recapitalization "showed that Able's earlier disclosures concerning the alleged refinancing of its defaulted debts were false and fraudulent." Earlier disclosure? Don't ask. Too darn complicated. Bottom line, according to Asensio, is that if Able's latest plan doesn't work, the company may again be in default on its debt in 84 days. Able's stock, meanwhile, was wallowing as of yesterday's close at 8 13/16, a far cry from its 52-week high of around 21. Able's comment? A company spokesman didn't return my call.