Quote:
Originally Posted by sacX
Interpretation. AFF as a business made 17.6 million. Once you include interest expense which was about 58 million, it lost 32.3 million.
So what's sinking the numbers is the interest on the debt. The owners of the debt could foreclose on the current owner, but in all likelihood they'd keep the underlying business runningwhich made 17.6 million last year, they wouldn't just shut up shop because that'd be killing the asset on which they have a lien.
|
Do you mean the debt from the acquisition that got dumped on them? I just ask because they lost money in 2007 as well. I'm not sure when the deal with them and PH went down.
Sounds like they made the same type of deal that Sam Zell made when he bought the Tribune. Took on a huge load of debt in hopes to be able to pay it off but the marketplace has changed so much all the creditors are looking for their penalty balloon payments.
http://www.newsweek.com/id/173152
BTW, I'm not arguing, just trying to think out loud and figure this thing out as I think it has some ramifications for the long term health of illegal tube sites. I bet some of these sites make 50% of their revenue from AFF and if it tanks, not too many people are going to be in line to pick up that slack.