Business Update: Discussions and Disclosures


As you know, the company is continuing efforts to address the debt on our balance sheet. Thanks to everyone’s focus on Job One, this work has not impacted our commitment to operational excellence as we prepare for the important summer season.

We filed two public disclosures related to our ongoing balance sheet work. Information about the filings is below, but we believe it’s important to note the context of these developments.

Our objective all along has been to strengthen our balance sheet and to position the company for the future, and we are having constructive discussions with some of our investors and other financial stakeholders. While we have not yet reached an agreement, and we can’t guarantee that an agreement will be reached, negotiations are ongoing. The discussions are important because we believe that agreement on a restructuring plan would minimize time and expense spent in a restructuring.

These discussions concern various restructuring alternatives, which would be implemented through a reorganization under Chapter 11 of the U.S. Bankruptcy Code. That process is intended to permit a company to continue normal business operations while it restructures its balance sheet. Throughout a potential Chapter 11 reorganization, the company fully expects that it would continue normal business operations.

In light of the constructive nature of our discussions, we have taken certain steps, both of which we have announced publicly:

  • We have elected not to make certain interest payments due April 1 on some of our corporate notes. While the company has available liquidity to make these payments, we decided not to make them in order to facilitate the discussions on a potential restructuring plan. It’s important to note that the debt agreements allow for a grace period to make the payments.
  • Second, we have also filed with the SEC to automatically extend the time within which to file our 10-K annual report for the year ended Dec. 31, 2013.

We look forward to keeping you updated on our progress.

Resources:

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