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Originally Posted by slavdogg
i have ... and much deeper than you have.
Unlike you who first learned of Ren Cap on gfy.
I've known them, dealt with them, met with them
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Yeah, sounds like a real stand-up, top-notch company, taking on a shady IPO:
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On September 23, 2008, Fitch a financial rating company has downgraded Renaissance Capital's individual rating to D from C/D and changed the outlook on the bank's long-term issuer default rating to negative from stable.
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Upon reading the S1, it appears that the company is in default on its debt due to failure to maintain covenants and needs the IPO cash to pay down that debt, else it will be forced to liquidate assets to meet the redemption. And according to the S1, its assets may not be sufficient to pay down the debt. So it looks like the primary impetus for the filing is to help them remain a going concern, so this should not be interpreted as a sign that the market for Internet IPOs is starting to recover.
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From The S1:
?We do not currently have sufficient cash to repay this indebtedness if our debt is accelerated and if the noteholders instituted foreclosure proceedings against our assets, the proceeds of the assets could be insufficient to repay such indebtedness in full. Under these circumstances, we may be unable to continue operating as a going concern.?
"We have breached certain non-monetary covenants contained in agreements governing our 2005 Notes and 2006 Notes and our subsidiary, INI, has breached certain non-monetary covenants contained in its agreements governing the First Lien Senior Secured Notes, Second Lien Subordinated Secured Notes and Subordinated Convertible Notes. We cannot assure you that we will be able to cure such defaults or events of default, obtain waivers and consents, amend the covenants, and/or remain in compliance with these covenants in the future."
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