Unwitting Leverage

Lying under the accountant’s Damocles sword, TBS International announced yesterday that it was delaying its earnings release for the fourth quarter and year-end 2008 as it sought to complete negotiations of waivers of certain financial covenants with respect to its credit facilities. Without the waivers, the debt, under accounting rules, is no longer a long-term liability and instead becomes a current liability due and payable within the year. No one has an interest in that happening. But the fact that negotiations have been cut so close to the announcement suggests they haven’t been easy

This is only an excerpt of Unwitting Leverage

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.