Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: NorthCarolinaKen Big red star, 1000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 725  
Subject: Re: Peregrine Delisted Date: 6/28/2002 6:17 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
I just went out on Edgar to see what Peregrine is telling the SEC. The last posting is their loan agreement with Foothill Capital, a Silicon Valley outfit. The loan is for $56 million, net $50 million to Peregrine. The loan colateral is basically everything of value in the company, the most valuable of which in my view is their customer service intellectual property (software). It also forced the sale of the supply chain business to Golden Gate Capital. Repayment of the loan is at the rate of just over $1 million a month, beginning in February of 2003 and ending with a baloon payment at the end of the year. Both of these investment firms a vulture capital outfits looking for assets at very distressed prices. They did well here.

Sexton is pretty closed mouth about what all this means but I infer is that this bridge loan will keep the company going through 2003 at the current business rate and that it is unlikely that they will enter bankruptsy court in the near term. That also implies that they will clean up their books and get re-instated on NASDQ.

Where they are is in a horse race. If the economy improves and they execute well and get back on their feet, they will emerge winners by the end of next year. If they don't, Foothill Capital will get all the assets of the company and the stock will be worthless.

Ken
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement