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Technically AFF makes $, as in their EBITDA is still positive. However when you take into account their debt agreements and interest, they lose money. The interest is drowning them.
Debtholders are getting concerned that their cash reserves are getting low, and EBITDA is shrinking (I believe the article said it dipped below $80M), and now they question whether the interest payments can continue to be made.
Significant debt is coming due in the next year or so, and the company is not in a position to re-finance that debt. Lastly, they have gone public, and the shares have slid, so I am unsure of the realities of if the debtholders would want to exchange their debt for shares of the company.
It will be interesting to see what the bondholders do, primarily Conru, who was the original owner, and a large holder of bonds. This is my take, for what it's worth. On some level they both may need to work together or they both can lose. Then there's also the possibility they prefer to trigger a creditor event and unsure what that would mean. Still trying to get my head around it. Curious what others think.
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