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.
- Bankruptcy. The company files a voluntary petition for
Chapter 11 or Chapter 7.
- Involuntary Petition. An involuntary bankruptcy petition
is filed against the company.
- 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
- Distressed Exchange Offer. The company announces an
exchange or tender offer for
outstanding debt or preferred stock at a significant discount
from face value.
- Preferred Dividend Omission. The company omits the dividend
on its preferred stock.
- 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.
- Restructuring. The company proposes a significant restructuring
of its obligations.
- 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.
- 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
- Covenant Problems. The company violates or indicates
that it is likely to violate covenants
in its debt agreements.
- 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
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All subscriptions entered are continued until canceled. For subscription
Marjorie Guerette at (240) 629-3300, ext. 27.
Troubled Company Prospector is a publication of
Beard Group, Inc., PO Box 4250, Frederick, MD 21705,
(240) 629-3300, http://www.bankrupt.com.
ISSN # 1062-2330. Copyright 2004. All rights reserved.
Pub1isher: Christopher Beard.