Ascent / MONI Faces Lender Lawsuit and Debt Crisis

By: Dan Gelinas, Published on Sep 13, 2018

ASCMA, aka Ascent, aka Brinks Home Security, aka MONI, aka Monitronics is being sued by a group of their lenders who allege:

As of June 30, 2018, MONI itself is hopelessly insolvent with only $2.1 million of cash and cash equivalents on hand. MONI, a business that loses more money every year, that has limited cash, and that has a negative book equity, owes approximately $1,731,235,000 to creditors.

And the stock market has punished ASCMA even further since the suit, down another 50% in the past week:

What is going on? In this note, we examine:

  • Who Is Suing Ascent And Why
  • What Financial Problems Ascent Faces
  • Compared to ADT Financial Performance
  • Even More Troubled Than Just Out Of Bankruptcy Arecont
  • How Low Their RMR Valuation Is
  • What The Future Holds for Ascent And Its Subsidiary, Moni/Brinks Home Security

*****, *** ******, *** ****** Home ********, *** ****, aka *********** ** ***** sued ** * ***** of ***** ******* *** allege:

** ** **** **, 2018, **** ****** ** hopelessly ********* **** **** $2.1 ******* ** **** and **** *********** ** hand. ****, * ******** that ***** **** ***** every ****, **** *** limited ****, *** **** has * ******** **** equity, **** ************* $*,***,***,*** to *********.

*** *** ***** ****** has ******** ***** **** further ***** *** ****, down ******* **% ** the **** ****:

**** ** ***** **? In **** ****, ** examine:

  • *** ** ***** ****** And ***
  • **** ********* ******** ****** Faces
  • ******** ** *** ********* Performance
  • **** **** ******** **** Just *** ** ********** Arecont
  • *** *** ***** *** Valuation **
  • **** *** ****** ***** for ****** *** *** Subsidiary, ****/****** **** ********

[***************]

Who ** ***** ****** *** ***

****** ******* ******* ********* ** * ***** of ****** **************** ***** **** *** in ****. *** *****, original ******* ** ******'* purchase ** *********** *************, claims, ***** ***** ******, Ascent ** ***** ** breach ********* **** ** attempting ** **** ******** of $*** ******* ** pay *** **** ** struggling ********** ***********'/****** **** Security's *****. **** **** would ** ******* ** revive *** ***** *******,*** ********* *********** ***** ***** ****** unable ** *** *** the **********' ***** **** they **** *** ** 2020. 

*******, ***** ******* ***** the ******** ******* ** a ********* ******* ** stave *** *** **********:

 

*** ********** ** ** far ** ** *** that *** ***** **** scenario *** **** ***** be ****** ** *** business:

*** ********** ***:

********** *** *** ******* and *** **********.

*** ********** *** ****** to **** *** **** exchange.

98% ***** ****

** ***** **** ** December ****, *** ******* was ******* ** $**.**/*****, plunging **% ** *** past * *****:

****** *** ***** ******** problems **** ********* *** the **** ** ******** an *******. *** *******, which *** ***** ** the *** ** ****** 2018 ******* ******** *** dropping ***** *****. *** complaint **. ****** ***** out *** *******'* "********" financial ********:

ADT ** ******

******'* ****** *** ** ~$16 *******, ***** ** disastrous **** ******** ** others ** *** *****. 

******* **** ** ***'* $6 *******.

********* **** *********' ***** to ******* ***** *** bad ** * ********* Ascent ** **. *** trades ** ~*.** *** revenue (******* *** *** ongoing ******), ***** ****** is ******* ** * nearly ************ *.*** ** its *******.

*** ********* **. ****** ****** out **** *** ********* problems **** **** ****** worse *** ***** ** 2018:

Arecont **********

** ** **** ******* that ****** ** **** has *** **** ******* value *********** *** **** ** went ******** **** */** the ********* ****** (******* **** revenue ~$** ******* ** Ascent ~$*** *******).

********, * **** ** the *******'* **** **-* shows *** ****** *** high ****:

Bankruptcy ****

****** ****** ** $*** million *** **** ** $1.77 ******* ****** **** at **** ** **********, the **** ******:

RMR ********* ** ~*.**

***** ******** ******* *** valuation ** ********* ***** in *** *** *****, Ascent's ** **** ~*.**. While **** ****** **********, it ** * ******** of *** *******'* ********** low ****** ********* *** related **** **** ********. While *** ******* *** RMR ** *** ~$** million *****, *** ********* is **** * ******** of * *****'* ***.

** ****** *** **** a *** *** *********, it ***** ** ***** ~$1.2 ******* ***** ** what ** **** ** be ***** * ***** ago.

Future *** ****** *** ****/******

****** ****** *********** ************* in **** *** $*.* Billion. ** **** ****, principles ** **** ********* were **********, **** *********** saying ****** ***** ***** "stability":

*** *** ****, ****** believed *********** ***** ******* future ******:

****** * ****** ***** the ******* ** *** so ******.

****** ** ***** ** have * ********* **** in ******* **** *** high **** ****, ***** may ****** ** *** lender's ****** * ***** loss, ******* ******* *** (very *** ******) ****** or ******* ****** **** bankruptcy.

Comments (16)

***, **** *********!

*** ***** ** *** still ****** ** ********** is *** **** ** Ascent / **** / BHS ** ***** *** poor ********* ** * general / ********** ***** for ***** ********** *********, many ** ***** *** very ****** *********. ****** with ******** ** ****, please ******* ** ***** dan@ipvm.com

***** ***, ****! ***, please, *******, **** **** to **** ** * line ** *** **** experience ** *** **** of ****** ********* ********** companies.

** ******* *** ******* generation ** *****/****/ *** management ** ****** ******* and **** **************************… ******* **** ** not **** *******, ****** paid, ********* *** ***** managers….. *** *** ****. We ******* **** *** at *** “****** ** *** **** and ***** *******”. **** *** **** highly ******* *****, ********* and ********* ********. ****, I ** *** * skilled ***** *** ********* guy, *** **** *** some ** *** ****** from ** ** ***** in *** ********, ********* national ********** *** **** M&A. ** ********* ** observations ***********.

*** **** ******** ***** is ****** ***** ******… remote ********** *** *******/********** of ***** ********* ********* in **** **** ******** of “****** ***********”, *** third ***** ******* **** also ** *** *****, installation, *** *******. **** has **** ****** ** no ************** ****** *** Dallas ************. **** *** seeing ******* **** ***** “home **********”, *** **** too ****** *** ****. Their ******** **** **** of ***, ********** ********* Monthly *******, ***** ***,*** systems, *** *** ******** and ********* ******** ********** “deterrent” ******* (*** ******** or ** ****** ********* response **** **** **** for ****). ********* *******, are ************ **** **** and ********* ********* *** across *** ********, ********* ADT, *** ******* *******….*** surprise **** ********* ***** of * *** **** in ***** ******** ******. This ********* ** **** costly ** *******.

*** ** ****** ****, with ***** *********** *** commercial ************** (*****) ********** the *******, *** *** complete ****** ** *****, installation, *******, *******/**********, *****, financial, *&*, ********* **** dealers, ***, ***... *** still ******** **** ******** of *** ******** “*********” system, **** *** ****** the **** **** *** destructive *********, ******* **** market *****.

*** “******* ******** ********” is ******* **** **** throughout *** *****. ** is ***** **** ********** in *** ** (**,*** independent *******; **** ******* remote **********) **** ****** of ******** ******, **** of ***** *** ********. Lots ** *** ******* players **** ******* *** be ******** **** **** recognize *** ******-*** **** not *******. ******* ** the *** ******** ****** will *** ******** *** do **** ****… ***** reason *** **** **** Amazon *** ****** *** attracted.

******: *** *****; ******* Services *****

 

**** **** ***

*** ***** **** ****** a ***** *****:

**** ******* *.**% *****:

****** ******* ****?

** ** ***** *****, or *** **** ****** 22%:

******* ********* ****** ***** is **** ***** **** but *** ****** ********* is ***** ***** $** million, ***** ** ********** low *** **** * larger ***********.

***, ********** ***…. *** also********** ******** ******* ** *** true ****, *** **** attrition (***** ** ********* noted *******) *** **** cost ** ********* ***********.

***'* **** ** * comeback!

**** ***** ****** **** .... ** * ***** stock ** *** **** trades ***** * ****** US, *** **** ** you **** * ***** that ****** ***** * penny?

*** ** **** ********? Are **** ***** ** business?

**** * ***** ******* the ***,*** ******** *** worth ** ***** ** to ** ***** ***, if *** ***** ** a ***** **** ** get **** **** *** debt. * *** **** are ****** ** **** this *** ** ***** this ** **** *** creditors *** ****** ** stop **** *** *******, haven't *** **** ** study **.

**** * ***** ******* the ***,*** ******** *** worth ** ***** ** to ** ***** ***, if *** ***** ** a ***** **** ** get **** **** *** debt.

****, ** **** *** get *** ** *** $1.7 ******* ** **** ;)

** **** ****** *** the ****, *** ****** would ** ***** ***, the ******* **** *** the *********** **** **** the ********* ***** ***. As *** *******, ********** they *** ****** ** work *** **** **** of ****, ****** *** stock ***** ******* **** the ********** ** ******** shareholders ********* *** *********** value ** ***.

********* *** **** **** many ***** ******. *** shareholders *** ***** **** a ******* ****** ***.

*** ****** ***** ** RMR = **-***, ** mention ** *****, ** historically *******. ******* ** believe *** ******* ****** value ** “*********” ******* is ********* ** ******** (low ** ** ******** police ********), ******** ** least **% ** **** municipalities. **** ** *** ASCMA/Moni ******** ********* ** deterrent **** ******** **********, originated ** *********** “*******” all ****** *** *******, without * ******** ***** service **************. **** ** attrition, **** ****. ** believe *** ******** ** ********* systems ****** *** ** a ****** *** ******* down *** ***** ** single ******.

Quick ******:***** ** * ****** big ****** *****, ** 95%:

**'** ******* **** **** might ** ***** ** behind **** **** *** will ****** **** ******** we **** ***.

*** ** ***'* *** yesterday, ** * ***** of ***.**%:

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