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Post by rfogel on Nov 7, 2020 8:27:48 GMT -5
Pardon my ignorance of accounting but in the 10-Q, "Short-term notes payable" increased from 5 million the previous quarter to 45,379,000. That coincides with the disappearance of the "Long-term Midcap credit facility" of 39 million. Does that mean the long term debt is now due?
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Post by cjm18 on Nov 7, 2020 9:08:54 GMT -5
Is one year the cutoff for short term vs long term?
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Post by agedhippie on Nov 7, 2020 10:33:14 GMT -5
Pardon my ignorance of accounting but in the 10-Q, "Short-term notes payable" increased from 5 million the previous quarter to 45,379,000. That coincides with the disappearance of the "Long-term Midcap credit facility" of 39 million. Does that mean the long term debt is now due? The imminent breach of the Midcap covenant means that the long term loan has to be classified as a short term loan since it would immediately fall due. What will happen is that the agreement will be amended and that will move the loan back to the long term column. This is all covered in the 10Q. |
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Post by brotherm1 on Nov 8, 2020 22:13:59 GMT -5
Pardon my ignorance of accounting but in the 10-Q, "Short-term notes payable" increased from 5 million the previous quarter to 45,379,000. That coincides with the disappearance of the "Long-term Midcap credit facility" of 39 million. Does that mean the long term debt is now due? The imminent breach of the Midcap covenant means that the long term loan has to be classified as a short term loan since it would immediately fall due. What will happen is that the agreement will be amended and that will move the loan back to the long term column. This is all covered in the 10Q. . Much appreciated Aged. I wish I could find that in the 10Q though. I’ve scoured through the 70+ pages and my tired eyes did not see it. Do you know if it said how the agreement will be amended? |
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Post by matt on Nov 9, 2020 8:28:39 GMT -5
Much appreciated Aged. I wish I could find that in the 10Q though. I’ve scoured through the 70+ pages and my tired eyes did not see it. Do you know if it said how the agreement will be amended? Nobody knows how the agreement will be amended until it is announced. Midcap seems a bit more risk averse than the Deerfield Funds and until now they have been willing to waive a covenant breach only in exchange for restricting an equal amount of balance sheet cash. MNKD simply doesn't have enough cash to continue doing that, and absent raising equity they won't be able to do so on an on-going basis. I would not look for Midcap to relax the covenants very much; that is not something lenders do very often unless things are going well for the borrower. I have a suspicion (purely that, it is just a guess) that the discussion of a sale/leaseback of the Darien facility is designed to turn that asset into roughly $20 million in cash. If that can be accomplished then Midcap can reduce their exposure to the company by reducing the principal outstanding $20 million and MNKD could hold enough cash collateral to cover the remaining $25 million. With an expected milestone from UTHR in the near term that will give the company enough cash to operate for a few more quarters. At this point it is a game of timing; UTHR royalties will start at some time in the future and MNKD needs to stay funded until that point is reached. A quarter of fresh cash here, a quarter there, and the gap can be closed. |
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Post by joeypotsandpans on Sept 29, 2021 16:09:37 GMT -5
Much appreciated Aged. I wish I could find that in the 10Q though. I’ve scoured through the 70+ pages and my tired eyes did not see it. Do you know if it said how the agreement will be amended? Nobody knows how the agreement will be amended until it is announced. Midcap seems a bit more risk averse than the Deerfield Funds and until now they have been willing to waive a covenant breach only in exchange for restricting an equal amount of balance sheet cash. MNKD simply doesn't have enough cash to continue doing that, and absent raising equity they won't be able to do so on an on-going basis. I would not look for Midcap to relax the covenants very much; that is not something lenders do very often unless things are going well for the borrower. I have a suspicion (purely that, it is just a guess) that the discussion of a sale/leaseback of the Darien facility is designed to turn that asset into roughly $20 million in cash. If that can be accomplished then Midcap can reduce their exposure to the company by reducing the principal outstanding $20 million and MNKD could hold enough cash collateral to cover the remaining $25 million. With an expected milestone from UTHR in the near term that will give the company enough cash to operate for a few more quarters. At this point it is a game of timing; UTHR royalties will start at some time in the future and MNKD needs to stay funded until that point is reached. A quarter of fresh cash here, a quarter there, and the gap can be closed. Far cry from $20 million 🤣😂🤣....I remember this beaut |
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