Ascent Capital Group, aka ASCMA, currently branded Brinks Home Security, formerly known as Moni and Monitronics faces a troubling end to a rocky 2018, as the company acknowledged that:
the Support Agreement has been terminated, effective immediately upon delivery of such notice of termination, because Ascent and MONI had materially breached the Support Agreement [emphasis added]
In this note, we examine ASCMA's problems and the risk of bankruptcy for one of North America's largest security monitoring companies.
OR… is this a very clever, nefarious, strategy by experienced management????
Lets remember the roots of the original company, Monitronics. A Texas investor provided critical startup capital, and a new president, mid-1980s for the founders of a Cedar Rapids Iowa startup monitoring firm known as My Alarm (not same as current My Alarm). Shortly thereafter, they bankrupted the firm, destroying dozens of friends/family investors, then purchased the assets for pennies (hundreds of monitoring contracts) and relocated the remote-monitoring facility to Texas, renamed Monitronics. The current Monitronics also has the same valuable assets(now about million customer monitoring contracts) albeit tinted. Will we see history repeat again???