ASCMA / Monitronics Declares Chapter 11 Bankruptcy

Published May 22, 2019 13:30 PM

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.

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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 **** *** ***'* ***:

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****** ***** *****, *** ******* *** had * ***** **** ** *** last *** *****, ********* ****** ******** ** ****** **** ********, ****** ******** **** ********** ****** (*********) **** ***** *** get ****,******* *********** ***** ******* ************* *** *******, ****** ****** ********* *******, *** ************** ************ **** **** ***** **** bankruptcy, ***** *** *** **** ** pass.

What *** ****** ****

******'* *** ******, ********* ** ** ***** ** Monitronics ********* **** ******* ********* & CEO**** *******, ********* "*******" ** *********** $*** million ** ****, ***** *** *** asserts ***** *********** *** "********* ******* sheet" ** *** ********, ** **** below:

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************, *** ****** **** *** *** has *** ******* ** * "********" of *** *******'* ******* *** **** the **** ******* ** *********** *** "voluntary" *** ***** **** *** ******* access ***** ** ****** ** ******** the ***:

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*** **** ** *** ****** ***** with ********** *** ******* *********. *** paragraph ******* ********* **** **** **** still *** ****, ** **** *****:

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******* ********* ******* ********* ** *** to ****** ********* *** ******* **** a ****** **** ** ********:

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*** ********** *********** *** ******** ** begin ** **** *** ** ********* in ***** *** *** * **** months.

Debt *** ** ****

***********, *** ************* **** *** *******'* debt ******* ** ****, ******* *********** with ~$*** ******* ** **** ***********, as ***** *****:

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********* ********'* **** **-****** **** ** **** ** ***** half, ** ***** *****:

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Either **** ** *****

******* ** *** *** *** ** found ** ***** *-* ************* *** ** *-*. ********* ******* **** ** **** in **** **** ******** **** * $245 *************-**-********** (***) ********, ** **** *****:

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************, ****** ***********, ***** *** ********* payment ** **** *** ***** ********** will ******* ****** * ***** ********** of **** **** *** **** ** a ******, *** ***** *** **** percentage ** ****** ***** ** *** newly *********** ***********:

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How ******** ** ***** ***** * ******** ******

*********** ***** ******* *********** *** ** *** *** ** would ** "******** ** *****" ** Monitronics, ** **** *****:

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***********, *** ******* ****** **** ********** with *** *** *** **********, ****** and *********** *** ******** * ****** of ****** **** ***********, ** **** below:

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***** *** * ****** ** ******** factors *** *** ****** *** *** release ***** **** *** ****** *** not ****** ** ****** ** ******** to **** **** **** $** ******* on *** **** ** ********** ** the ***, ** **** *****:

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***********, ***** *-* *************' *** ** *-******** *** ******, ********** **** *** newly ****** *** "*********** ***********" ***** have ****** ***** *** ****** ** a ******** ********** ********, *** "*** be ******** ** ******* ** ******* operated ***** ******* *****," ** **** *****:

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Feedback **** ******

******'* ***** ********** ************** ** **** **** *** ********** specifically ** *** ********** **** ** the *** *** ******** ** ******* ***** *******:

**’** *** ******** *** ******* ****** the ***** ******* ** **** ****, but *** *** ******* ** *** restructuring *** ** *** ***** *******.

SEC **** "********* *****"

*** ** *** ******** ****** ********* **** ** ******* Chapter ** ***** *** **** ******* and *****, **** ** ***** ************** allows **** ** **** *** *** other ****:

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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 ******** ** ********** **** ***********.

Comments (10)
U
Undisclosed #1
May 22, 2019

**** ** ***** **** ******** *** is ********* ** **** ****:

(3)
JH
John Honovich
May 22, 2019
IPVM

***, **** *********.

** *** *** ***'* ******* ***** having *** '********* ******* ***** ** the ********':

****'* *** ********** ******** ******* *********** the ****** **** ***** ******* ****. I'm ********** ** *** **** ***** lenders **** **** **** ***** *******.

(6)
Avatar
Dan Gelinas
May 22, 2019
IPVM

** **** ***** *** ********* ******* 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 *** *******.

(1)
JH
John Honovich
May 22, 2019
IPVM

***** ***** ******** **%*****:

****'* *****, ****** ***** ****** ************** is ***** **** $** ******* ***** that.

*** ** *** ****** * **** ago, *** *** ***** **** ****** 50%

*******, ** *** ****** * ****** ago, *** ***** **** ******* **** money! **** ****.

(1)
UD
Undisclosed Distributor #2
May 23, 2019

** *********...

********* ***** * ******* ** **** for ******.

******* ********* *** ******* *** ** dilution.

********* ********* *** * ******* ** Chapter **.

********* ****** ********* ******** *** ***** remaining **** ***** ********** ***** *** investors *** *** ***** ******* *** “strongest ******* ***** ** *** ********.”

*** ******** ****... **** ********* ** at **.*% *** ***** ******** ******** exceeds ***!

** *** ****... ** ***** **** 36 ****** ** ***** **** ** a ****** *******. ** **** **** time, **** **** **** **** ****** half ** *** ******** **** ******* in ***** *...

 

 

LJ
Lee Jones
May 23, 2019
Support Services Group

******** *** *********** *** *******… ***** investment **** **** *******, **** ****** Iowa ***** ******* *******… ***** ***** hand-picked *** ********* …. ******** *** firm…. *** *** ****** (***) *** pennies… ******* *** ******** ********** *** investors...  **** ** ******…. ****** *** company ***********. ******* *********??

 

(4)
JH
John Honovich
May 30, 2019
IPVM

**** ******* *******: *********** ***** *******: ****** ******* ***** Losing ******, ******** ******* ***, *** ******:

“* ******* ***** **** ** **** lenders ******* ** **** ** *** residential ***** ****** *** *** **** few ***** — *** ***** * number ** ****** ******* — *** the ******** ****** ********* **** ** down **-**% **** *** **** * few ***** ***,” 

*** ***** **** **** ** ***** to **** **, ** *********** ***** to ****** *** ****** ******** *****? Are **** ***** ** **** **? Are **** ***** ** **** ** come **** * ****** ***? *** they ***** ** **** *** * new ****** **** ***** [*** *******] average ****** ****** ** *** — not *** — ** *** * 30 ********? **** ** ***** ** be *** **** **********,

(1)
Avatar
Jake Voll
May 31, 2019
SS&Si Dealer Network

*** **** * **** ***** ***** 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 *** **** ** *** ******.

LJ
Lee Jones
May 31, 2019
Support Services Group

***, *** ******* *********** “******” *******. However, **** ** ** *** ** as * ***** ********, *** * strength. ******** ** ********** ***** ******* trained *** ******* ** ******** ** different **-*********, **-***********, **-*********** ********** *** supervision. *** *** ******** ******** *** the ********** ***** ****** ****** ** the ******* ** *** ******** ****. Consequently, *** ******** ************ ***** ****** substantially **** *********** ************ ******* ********. Helps ** ******* *** **** **** attrition. *** *********** **** * ******* multiple *** ***** *********.

JH
John Honovich
Jul 01, 2019
IPVM