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Bankruptcy almost inevitable now?

Started by Palomino, 01/16/2009 09:35PM
Posted 01/16/2009 09:35PM | Edited 01/17/2009 08:26AM Opening Post

Did anyone listen to the Meade conference call yesterday? They stated that they were not currently in compliance with the terms of their loans. And, their Bank Of America credit line, which has to be renewed in September, meade stated that they do not meet the minimum requirements for extending this loan at this time although they "hope" to renegotiate these terms as they are not the only company in this situation. With Bank of America going back to the government again for bailout funds why would they loosen up the terms of their agreement on this credit line and then renew that credit line in September on a company that has little chance to survive this downturn in the economy.

Looks like September may be the end for Meade in it's current form unless the credit market changes dramatically in the next few months, which is highly unlikely. Meade stated that they had several hundred pre-orders for the new ETX-LS. Well, in this enviroment they would have to sell tens of thousands of these or more to now survive and in the companies current state I dont think they are capable of producing them and with the current economy they wouldnt be able to sell that many anyway even if they could produce them.

Any contrary opinions out there or maybe something Im missing?...

Mike Krivsky
Posted 01/17/2009 12:14PM #1
This does not sound promising, but it does fit the trend shown in the stock prices. Too bad really, they might have a few good products to offer, but if things do not improve, it will be hard to sell anything.
If you can imagine, Meade failing would mean serious issues for owners of the highly technical new products, as far as service and repair is concerned.
We may be seeing the end of their reign.

[SIZE="Large"][/SIZE][COLOR="Blue"][/COLOR] Floyd Blue grin
Amateur Imager
Posted 01/18/2009 06:21AM #2
"Several hundred pre-orders" shocked

It sounds to me like dealers are not lining up to get their shelf stock of the LS model...

I've also seen rumors that Celestron's operation in Taiwan is not in the best of shape either, and if that is true then the most likely suitor for Meade probably isn't coming to the rescue.

Jim McSheehy