In order to appear in the Troubled Company Prospector a company must meet one of the
conditions listed below. In many cases, when a profiled company meets another condition, it
will appear in the Prospector again. However, once a company files a bankruptcy, it will not
appear again even if a new condition applies at a later date.

  1. Bankruptcy. The company files a voluntary petition for Chapter 11 or Chapter 7.
  2. Involuntary Petition. An involuntary bankruptcy petition is filed against the company.
  3. Default. A significant event of default is reported with respect to a company's obligations.
    Usually this will be a default in payment of principal or interest on debt.
  4. Distressed Exchange Offer. The company announces an exchange or tender offer for
    outstanding debt or preferred stock at a significant discount from face value.
  5. Preferred Dividend Omission. The company omits the dividend on its preferred stock.
  6. Debt at Deep Discount. The company's public debt trades with a current yield or yield-to-
    maturity in excess of the lower of 18% or eight points over the long-term treasury bond rate.
  7. Restructuring. The company proposes a significant restructuring of its obligations.
  8. Low Rating. The company's public debt is downgraded (or new rating is set) by a major
    rating agency to or below a level indicating a "current vulnerability to default," such as
    Standard & Poor's CCC rating.
  9. Audit Concerns. The company's auditors, (i) qualify their opinion on its financial
    statements in a manner that indicates doubt about its ability to continue as a going concern,
    (ii) resign or (iii) take other action that indicates possible concerns.
  10. Covenant Problems. The company violates or indicates that it is likely to violate covenants
    in its debt agreements.
  11. Miscellaneous. Some other event occurs or is reported which, in the opinion of the editors,
    indicates that the company may be in or approaching financial distress or otherwise raises
    doubts about the future prospects of the company.

DISCLAIMER: The conditions for inclusion in the Prospector are selected by the editors
because, in their opinion, the occurrence of such an event or the existence of such a
circumstance is a likely indicator of current or prospective financial or operating difficulty.
There are, however, other reasons why such facts or circumstances may exist. The inclusion of
a profile suggests the possibility of financial distress or the possibility that the company may be
of interest to workout professionals for some other reason. Inclusion should not be construed to
represent analysis of the condition of the company or a definitive determination that the
company is in difficulty.

ACCURACY & COVERAGE: The information contained herein is obtained from sources
believed to be reliable. However, the accuracy of most data cannot be verified prior to
publication, and the information is not guaranteed. Desired information is often incomplete,
inaccurate, delayed or unavailable. Do not rely on the Prospector without independent

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Troubled Company Prospector is a publication of Beard Group, Inc., PO Box 4250, Frederick, MD 21705,
(240) 629-3300, ISSN # 1062-2330. Copyright 2004. All rights reserved.
Pub1isher: Christopher Beard.