So,
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
WI
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
WI