ASCMA / Monitronics Declares Chapter 11 Bankruptcy
Monitronics is entering into Chapter 11 bankruptcy. The company, also called Ascent Capital Group Inc., aka ASCMA, aka Brinks Home Security, formerly known as Moni, has struggled for some time.
Update: June 1, 2019, the company has now officially declared bankruptcy.
In this note, based on our own research and outreach to Ascent via their press contact, we examine the following:
- What their plans are in bankruptcy
- How "business as usual" means an intended merger
- What the details of the restructuring are
- Feedback from Peter Giacalone & John Brady
- Challenges and Outlook
******'* ********** ***********, *** ***** ***** the ****** **** ******** *****, ** the*** ******* ******** ********** ** *** US, ** **** ***** ** *** screenshot **** *** ***'* ***:
****** ***** *****, *** ******* *** had * ***** **** ** *** last *** *****, ********* ****** ******** ** ****** **** ********, ****** ******** **** ********** ****** (*********) **** ***** *** get ****,******* *********** ***** ******* ************* *** *******, ****** ****** ********* *******, *** ************** ************ **** **** ***** **** bankruptcy, ***** *** *** **** ** pass.
What *** ****** ****
******'* *** ******, ********* ** ** ***** ** Monitronics ********* **** ******* ********* & CEO**** *******, ********* "*******" ** *********** $*** million ** ****, ***** *** *** asserts ***** *********** *** "********* ******* sheet" ** *** ********, ** **** below:
************, *** ****** **** *** *** has *** ******* ** * "********" of *** *******'* ******* *** **** the **** ******* ** *********** *** "voluntary" *** ***** **** *** ******* access ***** ** ****** ** ******** the ***:
*** **** ** *** ****** ***** with ********** *** ******* *********. *** paragraph ******* ********* **** **** **** still *** ****, ** **** *****:
******* ********* ******* ********* ** *** to ****** ********* *** ******* **** a ****** **** ** ********:
*** ********** *********** *** ******** ** begin ** **** *** ** ********* in ***** *** *** * **** months.
Debt *** ** ****
***********, *** ************* **** *** *******'* debt ******* ** ****, ******* *********** with ~$*** ******* ** **** ***********, as ***** *****:
********* ********'* **** **-****** **** ** **** ** ***** half, ** ***** *****:
Either **** ** *****
******* ** *** *** *** ** found ** ***** *-* ************* *** ** *-*. ********* ******* **** ** **** in **** **** ******** **** * $245 *************-**-********** (***) ********, ** **** *****:
************, ****** ***********, ***** *** ********* payment ** **** *** ***** ********** will ******* ****** * ***** ********** of **** **** *** **** ** a ******, *** ***** *** **** percentage ** ****** ***** ** *** newly *********** ***********:
How ******** ** ***** ***** * ******** ******
*********** ***** ******* *********** *** ** *** *** ** would ** "******** ** *****" ** Monitronics, ** **** *****:
***********, *** ******* ****** **** ********** with *** *** *** **********, ****** and *********** *** ******** * ****** of ****** **** ***********, ** **** below:
***** *** * ****** ** ******** factors *** *** ****** *** *** release ***** **** *** ****** *** not ****** ** ****** ** ******** to **** **** **** $** ******* on *** **** ** ********** ** the ***, ** **** *****:
***********, ***** *-* *************' *** ** *-******** *** ******, ********** **** *** newly ****** *** "*********** ***********" ***** have ****** ***** *** ****** ** a ******** ********** ********, *** "*** be ******** ** ******* ** ******* operated ***** ******* *****," ** **** *****:
Feedback **** ******
******'* ***** ********** ************** ** **** **** *** ********** specifically ** *** ********** **** ** the *** *** ******** ** ******* ***** *******:
**’** *** ******** *** ******* ****** the ***** ******* ** **** ****, but *** *** ******* ** *** restructuring *** ** *** ***** *******.
SEC **** "********* *****"
*** ** *** ******** ****** ********* **** ** ******* Chapter ** ***** *** **** ******* and *****, **** ** ***** ************** allows **** ** **** *** *** other ****:
Feedback **** ********* & *****
**** ************** ***** **********, ** ******** ********* ******** *******, said **** ***********—*** *** **** ** the ********—***** ******* ******* ** *** restructuring, *** **** ** *** **** a ****** ** *****:
*** *** *** ** *** ***** for *** ******** *** ********* *********** as ** **** "* ****" ** the "****** *****" *** *** ******** which *** ******** ********** ******* ****** the ******** *** ***** **** ** companies.**** **** ******* ***** ** *** good **** *** **** **** ***** size ***** "***********" ** **** *** move *******. **** **** * **** high ********* **** ***** *** ***** have * ******* ****** ** *** and * **** ****** ****, "*** company *** **** *** *** *** of ******* ** ** ***** **** of **'* ******** ********* *** ************* RMR ** * ******* ******—*** *** alot ** ******* *****."** *** ******** *** ***** ****** back ** *** **'*—**** **** ******* 11 **** $*.** ** ***—**** *** with $*.** *** *** ***** ***** up ******* ***** ***** **** *** it **** * -* ***** *** we *** ********.
***** ****************** *********** **********, ** ******** ********** *******, **** there **** ******* **** ** *********** if **** **** ********** ** ******* a "*** *********." *******, ** **** that ** *** ********* ** *** industry **** *********** ******* **** *******:
* ******* ** ******* ***** ** they *** ************ *********** ****, ****** operational ************ *** ***** ********** *** toward * *** *********. **’* ********* to *** ******** *** **** ** survive *** *******.
******
*** ****** ** ********* ***********. *** reduction ** ****** *** ******* ** debt ****** ***** / *********** ** continue ** ******* *** ** *** to *******. ***** *** *******'* ******* lost ************* ** **** ****, **** could **** **** ********** ******* **** restructuring.
**********
** *** ***** ****, ******* *** money ** ****** ** ************ ****** will ** ********* ***** ****, **** personal **********, ******* **** ** **** more ******** *** ******* ** **** funding **** ******* *** * ******* that **** ********** ****** * ******* dollars ****.
********, *** ************ ** *** ****** overall ****** **********, ** *** ****** of *** *** ***-*********** **** ****** place ******** ** ********** **** ***********.
***, **** *********.
** *** *** ***'* ******* ***** having *** '********* ******* ***** ** the ********':
****'* *** ********** ******** ******* *********** the ****** **** ***** ******* ****. I'm ********** ** *** **** ***** lenders **** **** **** ***** *******.
** **** ***** *** ********* ******* to *** ***** *****:
Feedback **** ********* & *****
**** ***** ********* ***** **********, ** ******** ********* ******** *******, said **** ***********—*** *** **** ** the ********—***** ******* ******* ** *** restructuring, *** **** ** *** **** a ****** ** *****:
*** *** *** ** *** ***** for *** ******** *** ********* *********** as ** **** "* ****" ** the "****** *****" *** *** ******** which *** ******** ********** ******* ****** the ******** *** ***** **** ** companies.**** **** ******* ***** ** *** good **** *** **** **** ***** size ***** "***********" ** **** *** move *******. **** **** * **** high ********* **** ***** *** ***** have * ******* ****** ** *** and * **** ****** ****, "*** company *** **** *** *** *** of ******* ** ** ***** **** of **'* ******** ********* *** ************* RMR ** * ******* ******—*** *** alot ** ******* *****."** *** ******** *** ***** ****** back ** *** **'*—**** **** ******* 11 **** $*.** ** ***—**** *** with $*.** *** *** ***** ***** up ******* ***** ***** **** *** it **** * -* ***** *** we *** ********.
***** ********* ********* *********** **********, ** ******** ********** *******, **** there **** ******* **** ** *********** if **** **** ********** ** ******* a "*** *********." *******, ** **** that ** *** ********* ** *** industry **** *********** ******* **** *******:
* ******* ** ******* ***** ** they *** ************ *********** ****, ****** operational ************ *** ***** ********** *** toward * *** *********. **’* ********* to *** ******** *** **** ** survive *** *******.
***** ***** ******** **%*****:
****'* *****, ****** ***** ****** ************** is ***** **** $** ******* ***** that.
*** ** *** ****** * **** ago, *** *** ***** **** ****** 50%
*******, ** *** ****** * ****** ago, *** ***** **** ******* **** money! **** ****.
** *********...
********* ***** * ******* ** **** for ******.
******* ********* *** ******* *** ** dilution.
********* ********* *** * ******* ** Chapter **.
********* ****** ********* ******** *** ***** remaining **** ***** ********** ***** *** investors *** *** ***** ******* *** “strongest ******* ***** ** *** ********.”
*** ******** ****... **** ********* ** at **.*% *** ***** ******** ******** exceeds ***!
** *** ****... ** ***** **** 36 ****** ** ***** **** ** a ****** *******. ** **** **** time, **** **** **** **** ****** half ** *** ******** **** ******* in ***** *...
******** *** *********** *** *******… ***** investment **** **** *******, **** ****** Iowa ***** ******* *******… ***** ***** hand-picked *** ********* …. ******** *** firm…. *** *** ****** (***) *** pennies… ******* *** ******** ********** *** investors... **** ** ******…. ****** *** company ***********. ******* *********??
**** ******* *******: *********** ***** *******: ****** ******* ***** Losing ******, ******** ******* ***, *** ******:
“* ******* ***** **** ** **** lenders ******* ** **** ** *** residential ***** ****** *** *** **** few ***** — *** ***** * number ** ****** ******* — *** the ******** ****** ********* **** ** down **-**% **** *** **** * few ***** ***,”
*** ***** **** **** ** ***** to **** **, ** *********** ***** to ****** *** ****** ******** *****? Are **** ***** ** **** **? Are **** ***** ** **** ** come **** * ****** ***? *** they ***** ** **** *** * new ****** **** ***** [*** *******] average ****** ****** ** *** — not *** — ** *** * 30 ********? **** ** ***** ** be *** **** **********,
*** **** * **** ***** ***** the ******* *********. *** ********** *********** cost ** *** ** ******* (************* 30% ****** **** ***) *** **** be *********. *************, ***** ********* **** decrease ********** *** ********* ** ******* outpacing *** ********** ***.
***** ** * ***** **** ** the ****** ** *** ****** (**** attrition ** ** **.*%). * **** disciplined ******** ** ******* **** ****** won’t ***** ***** *******. *** *’** seen ********* ******** **** ****’** ***** extreme ******** ** ****** ******** (**. free ******* + $**/**********), ** ******** unit ********* ***** ** * ****** misrepresentative.
* ******* **** **** **** *** bubble *** *** ********** *** **** folks ***’** **** ******* *** ****** with ******* ********** **** **** ********** at *** *** ** *** ****.
*** *** ****, *** ***** *** been ** ***** ** ***** ***** and **** **** * ***** ** “free” ***** **** ****’* **** **** wanted (** ** ***** ****’* **** badly ****** ** **** ** ** their ***), *** **** **** **** paper ** *** ******* ******.
**** **** ** * ******* *** necessary **********.
***’* *** ** *****—**’* *** ************. *** let’s ** ******, ******** *** * bit ******* **** *** *** **’* time ** **** ****** ** ***** graves *** **** ** *** ******.
***, *** ******* *********** “******” *******. However, **** ** ** *** ** as * ***** ********, *** * strength. ******** ** ********** ***** ******* trained *** ******* ** ******** ** different **-*********, **-***********, **-*********** ********** *** supervision. *** *** ******** ******** *** the ********** ***** ****** ****** ** the ******* ** *** ******** ****. Consequently, *** ******** ************ ***** ****** substantially **** *********** ************ ******* ********. Helps ** ******* *** **** **** attrition. *** *********** **** * ******* multiple *** ***** *********.
******: **** *, ********** *** ********** ***** *** **********.
**** ** ***** **** ******** *** is ********* ** **** ****: