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

*****, *** ******, *** Brinks **** ********, *** MONI, *** *********** ** being **** ** * group ** ***** ******* who ******:

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

*** ********* **. ****** points *** **** *** financial ******** **** **** gotten ***** *** ***** in ****:

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)

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

*** ***** ** *** ***** ****** ** ********** ** *** much ** ****** / **** / *** ** ***** *** poor ********* ** * ******* / ********** ***** *** ***** monitoring *********, **** ** ***** *** **** ****** *********. ****** with ******** ** ****, ****** ******* ** ***** ***@****.***

***** ***, ****! ***, ******, *******, **** **** ** **** me * **** ** *** **** ********** ** *** **** of ****** ********* ********** *********.

** ******* *** ******* ********** ** *****/****/ *** ********** ** highly ******* *** **** **************************… ******* **** ** *** **** *******, ****** ****, ********* and ***** ********….. *** *** ****. ** ******* **** *** at *** “****** ** *** **** *** ***** *******”. **** *** **** ****** ******* *****, ********* *** ********* guidance. ****, * ** *** * ******* ***** *** ********* guy, *** **** *** **** ** *** ****** **** ** 50 ***** ** *** ********, ********* ******** ********** *** **** M&A. ** ********* ** ************ ***********.

*** **** ******** ***** ** ****** ***** ******… ****** ********** and *******/********** ** ***** ********* ********* ** **** **** ******** of “****** ***********”, *** ***** ***** ******* **** **** ** the *****, ************, *** *******. **** *** **** ****** ** no ************** ****** *** ****** ************. **** *** ****** ******* with ***** “**** **********”, *** **** *** ****** *** ****. Their ******** **** **** ** ***, ********** ********* ******* *******, about ***,*** *******, *** *** ******** *** ********* ******** ********** “deterrent” ******* (*** ******** ** ** ****** ********* ******** **** Moni **** *** ****). ********* *******, *** ************ **** **** and ********* ********* *** ****** *** ********, ********* ***, *** obvious *******….*** ******** **** ********* ***** ** * *** **** in ***** ******** ******. **** ********* ** **** ****** ** replace.

*** ** ****** ****, **** ***** *********** *** ********** ************** (costs) ********** *** *******, *** *** ******** ****** ** *****, installation, *******, *******/**********, *****, *********, *&*, ********* **** *******, ***, etc... *** ***** ******** **** ******** ** *** ******** “*********” system, **** *** ****** *** **** **** *** *********** *********, holding **** ****** *****.

*** “******* ******** ********” ** ******* **** **** ********** *** globe. ** ** ***** **** ********** ** *** ** (**,*** independent *******; **** ******* ****** **********) **** ****** ** ******** models, **** ** ***** *** ********. **** ** *** ******* players **** ******* *** ** ******** **** **** ********* *** status-quo **** *** *******. ******* ** *** *** ******** ****** will *** ******** *** ** **** ****… ***** ****** *** guys **** ****** *** ****** *** *********.

******: *** *****; ******* ******** *****

**** **** ***

*** ***** **** ****** * ***** *****:

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

****** ******* ****?

** ** ***** *****, ** *** **** ****** **%:

******* ********* ****** ***** ** **** ***** **** *** *** market ********* ** ***** ***** $** *******, ***** ** ********** low *** **** * ****** ***********.

***, ********** ***…. *** ************** ******** ******* ** *** **** ****, *** **** ********* (***** of ********* ***** *******) *** **** **** ** ********* ***********.

***'* **** ** * ********!

**** ***** ****** **** .... ** * ***** ***** ** one **** ****** ***** * ****** **, *** **** ** you **** * ***** **** ****** ***** * *****?

*** ** **** ********? *** **** ***** ** ********?

**** * ***** ******* *** ***,*** ******** *** ***** ** least ** ** ** ***** ***, ** *** ***** ** a ***** **** ** *** **** **** *** ****. * bet **** *** ****** ** **** **** *** ** ***** this ** **** *** ********* *** ****** ** **** **** the *******, *****'* *** **** ** ***** **.

**** * ***** ******* *** ***,*** ******** *** ***** ** least ** ** ** ***** ***, ** *** ***** ** a ***** **** ** *** **** **** *** ****.

****, ** **** *** *** *** ** *** $*.* ******* in **** ;)

** **** ****** *** *** ****, *** ****** ***** ** wiped ***, *** ******* **** *** *** *********** **** **** the ********* ***** ***. ** *** *******, ********** **** *** trying ** **** *** **** **** ** ****, ****** *** stock ***** ******* **** *** ********** ** ******** ************ ********* any *********** ***** ** ***.

********* *** **** **** **** ***** ******. *** ************ *** gonna **** * ******* ****** ***.

*** ****** ***** ** *** = **-***, ** ******* ** Larry, ** ************ *******. ******* ** ******* *** ******* ****** value ** “*********” ******* ** ********* ** ******** (*** ** no ******** ****** ********), ******** ** ***** **% ** **** municipalities. **** ** *** *****/**** ******** ********* ** ********* **** property **********, ********** ** *********** “*******” *** ****** *** *******, without * ******** ***** ******* **************. **** ** *********, **** term. ** ******* *** ******** ** ********* ******* ****** *** is * ****** *** ******* **** *** ***** ** ****** digits.

Quick ******:***** ** * ****** *** ****** *****, ** **%:

**'** ******* **** **** ***** ** ***** ** ****** **** jump *** **** ****** **** ******** ** **** ***.

*** ** ***'* *** *********, ** * ***** ** ***.**%:

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