Layoffs?

Discussion in 'MediMedia' started by Anonymous, Jun 4, 2011 at 6:46 PM.

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  1. Anonymous

    Anonymous Guest

    Things seem to be changing very quickly? Actually glad the Simcox is gone.....he was good at the beginning but to quote him, "Pigs get slaughtered!". Next ones to go are his good buddies at all the failing companies he bought! And none too soon!
     

  2. Anonymous

    Anonymous Guest

    Couldn't agree with you more. When Simcox bought Aptilon is said a lot about him and him being a pig.....
     
  3. Anonymous

    Anonymous Guest

    and so the layoffs begin - can't hit our number? no prob - just clip a bunch of staff in q3 and hide the real bottom line. typical strategy year after year - meanwhile the top mismanagers remain overpaid and underqualified.
     
  4. Time To Go

    Time To Go Guest

    How secure is your job?


    Published: Aug 12, 2011 12:56 PM

    MediMedia downgraded to CCC+ over covenant violation concerns

    Standard & Poor’s yesterday downgraded MediMedia’s corporate issuer and debt ratings on expectations that the company was in violation of its financial covenants for the second quarter and because the company is seeking covenant relief.

    The corporate issuer rating was downgraded to CCC+, from B, while the $200 million senior secured term loan due 2013 and $50 million senior secured revolving credit due 2012 were downgraded to B, from BB-. MediMedia’s $150 million issue of 11.375% senior subordinated notes due 2014 was cut to CCC-, from CCC+. All of the ratings also were placed on CreditWatch with developing implications.

    The term loan was quoted at 91.5/93.5 on Wednesday, sources said. The notes were pegged around 88, versus 96 before the sell-off this week, according to Capital IQ. The 144A-for-life paper was sold at par in late 2006 with CCC+/Caa1 ratings.

    According to S&P, MediMedia is negotiating with lenders to loosen financial covenants. “We believe that MediMedia has the capacity, albeit limited, to absorb likely costs of an amendment,” S&P wrote in the Aug. 11 report.

    MediMedia’s second-quarter operating performance was weaker than expected due to disruptions in its pharmaceutical marketing business. S&P expects the company to continue to generate negative discretionary cash flow into 2012 as a result of declining EBITDA. However, liquidity could be boosted by the sales of one of MediMedia’s businesses. But barring any significant debt repayment, S&P says MediMedia’s credit protection measures will weaken materially from its previous expectations, which included adjusted EBITDA coverage of interest in the high-1x area and leverage in the mid-7x area by the end of the year. As of March 31, MediMedia’s adjusted debt-to-EBITDA ratio was 7.1x.

    Goldman Sachs and Credit Suisse in 2006 arranged the $250 million loan package supporting Vestar Capital Partners’ acquisition of MediaMedia. The term loan initially priced at L+250, but was revised to L+225 in 2007. The facility was rated B+/Ba3.
     
  5. Anonymous

    Anonymous Guest

    It says a lot about your stupidity that you are apparently clueless to the fact that Aptilon is a canadian company publicly traded on the toronto stock exchange is it not owned by any other company including medimedia
     
  6. Anonymous

    Anonymous Guest

    And the trimming begins. Time to rearrange the deck chairs!

    "And Medi Media USA Inc., a healthcare IT services provider backed by Vestar Capital Partners, took a one-notch downgrade. "There was some mismanagement of an acquisition that led to quality issues, and resulted in increased expenses that caused Ebitda to fall," says S&P credit analyst Jeanne Shoesmith. MediMedia breached its maximum leverage covenant and now needs an amendment or waiver.

    Debt-burdened companies are susceptible to higher financing costs and leverage ratios while the unencumbered collateral declines. As Castellano says: "You have the combined effect of higher leverage and lower valuation on assets while operating in sectors vulnerable to weak general economic conditions and consumer sentiment." He adds: "There aren't many options other than to fix operations. And sometimes that would require true restructuring."

    Vyvyan Tenorio writes about private equity for The Deal magazine.