The SEC is your friend. <a href="http://sec.gov/Archives/edgar/data/840216/000110465907079754/a07-25495_110q.htm">Here is the latest 10-Q on CALC</a>.
<p><em>Under the Revolving Loan, the Company is required to comply with a number of covenants, including a leverage covenant and a minimum consolidated tangible net worth covenant of $100 million. As a result of the sustained downturn in the homebuilding industry, the tangible net worth covenant was reduced to $80 million, effective as of September 30, 2007, for a fee of $142,500, with no change to the Company’s borrowing rate. As of September 30, 2007, the Company was in compliance with its covenants. As of September 30, 2007, the Company has taken impairment charges totaling $32.0 million which have negatively affected the Company’s earnings and net worth.</em></p>
<p><em>Under the Term Loan, the Company is required to comply with a number of covenants, including covenants related to leverage, a minimum ratio of EBITDA to interest, and a minimum consolidated tangible net worth of $100 million. As a result of the sustained downturn in the homebuilding industry, the Term Loan was amended, effective as of September 30, 2007, for a fee of $187,500, with no change to the Company’s borrowing rate. The amendment reduced the minimum ratio of EBITDA to interest covenant from a range of 1.0 to 2.5, phased in beginning in the first quarter of 2008 through the fourth quarter of 2009, to a range of 1.00 to 2.5, phased in beginning in the third quarter of 2008 through the fourth quarter of 2009 to provide greater operating flexibility and accommodate the Company’s currently anticipated operating results for 2008. The Term Loan was also amended to reduce the tangible net worth covenant from $100 million to $80 million, effective as of September 30, 2007. As of September 30, 2007, the Company is in compliance with these covenants. As of September 30, 2007, the Company has taken impairment charges totaling $32.0 million which have negatively affected the Company’s earnings and net worth.</em>
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<p>There is a lot of other highlights, er lowlights, in that 10-Q. Instead of making them comply with their debt covenants, the banks just charged them $330k. Most likely, they just added it over the life of the loan, rather than a cash payment. This company is on shaky ground, and Shea is waiting in the wings to scoop them up.
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