I just checked out the <a href="http://idea.sec.gov/Archives/edgar/data/840216/000110465909000053/0001104659-09-000053-index.idea.htm">SEC filings</a>, and O M G!
They go and pay $10.9mil in debt, keep $1.6mil to probably make payroll, but agree to a lease of $262,500 a month or $15,441 a month per home, give up 75% of the profits of the model homes, and they think this is a good thing?
A reminder...
<em>
The Registrant also announced that it delivered seven (7) homes at Brightwater at an average price of approximately $2.1 million during the fourth quarter, including two (2) Cliffs homes and four (4) Breakers homes, which are the larger homes at Brightwater. Including the model homes, the Registrant delivered 40 homes in 2008 at Brightwater and 49 homes project-to-date. The Registrant has generated two (2) new sales orders at Brightwater since the quarter ended September 30, 2008.</em>
42.5% of their sales were the model homes. My gawd... nearly half.
If you really want to have fun, then check out the <a href="http://idea.sec.gov/Archives/edgar/data/840216/000110465909000053/a08-31294_1ex10d1.htm">lease terms</a>. If they F'up on any of their loans, they are considered in default. Check it out, that will hurt them like no other.
And here is the dagger to heart...
<em>
The Registrant utilized $10.2 million of the model home sales proceeds to make repayments under its Brightwater credit agreements, thereby reducing the payments that would have been due in 2009. The Registrant also utilized $10.7 million to reduce the balance outstanding under its revolving credit agreement, which amount can be re-borrowed under the terms of the revolver. <strong>The Registrant?s current liquidity, including cash on hand and availability under the revolver, is approximately $16.0 million.</strong> For accounting purposes, this transaction will be treated as a financing rather than a sale since the Company has a continuing interest in the property through its eligibility for profit participation.</em>
Holy sh*t! Just last quarter they amended their $210mil credit revolver for an additional $100mil, and now they only have $16mil available? OMG! This is horrendous, awful, and down right scary.
At $0.56 a share, having very little credit line left, a vulture fund that will never see the returns it dreamed of, the walking away of their corona project and dumping the debt onto us taxpayers via the FDIC/Indycrap, and the sheer and disgusting amount of debt shifting going on... this company is done in 2009.
All of you Brightwater employees/former employees who came on here and acted like a total douchebag... when I tried to warn you that your company was headed to BK, you can all kiss my a$$. I tried, I really... truly tried to show you how if you actually read the quarterly and annual statements, then you would know where you were headed. But either you didn't read them, or you didn't understand them. You get what you deserved. The writing was on the wall, and I just tried to point you to the wall, and now the wall is falling on your head. Your company isn't even worth shorting it is so worthless. Lessons from the 90s should have been learned from Katheryn made at Koll.