ASCMA / Moni Problems Deepen, Lenders Terminate Support Agreement

Published Dec 28, 2018 15:01 PM

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]

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In this note, we examine ASCMA's problems and the risk of bankruptcy for one of North America's largest security monitoring companies.

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*** *****-********* ****** ** ********* ******** as *** *** ******* ********** ******* in ***** ******* ***** *** *** Vivint. *******, ** ****** ****, **** tried ********* ********** **** *** ******** ****** Moni ** ****** **** ********. **** ** *********, *** ************ * ******* **** *********** *** ******* ******** **** ******** offers **** ***** *********** **** ************ the ******* ****** ****.

*** ******* ****** ** ****-****** ******** **, ****, **** ** breached *** ********* **** * ***** of ******* *** ************ *** ******* terminated **** *********:

*** ********* ********** **** *-* ******* (as ******* ** *** ******* *********) provided ******, **** *** *** ********** Noteholders **** * ****** ** *********** under *** ******* *********.

*** *-* ***** **** ****** ****** a ***** ******* *** ******* *********** on ***** ****:

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*******, ******** ******* **** ******'* ********* ** ******* *** ******* *********** the ******* *********, *** ****** ****** that ****** ********* *** ******** ******, as **** ** *** ********* *****:

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******* ****** ** *** ********/********** ********* is *** *********** ** *** ********* to *** ****** ********* ** **** below:

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*** *****-***********-* ***** ******** **, ******* *** ********* **** ******* *******, including ******** *** ******* ** ***** new ***** *** **** ****** *** revolving ****** *********** ***** *** ********* portion ** *** ****** ********, ***** other ******:

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*** ******* **** **** *** ** comment ** **** ****.

**** **** ******* *** ** ******** industry ********** ************** *******, *** ****** *****, ***** **** it ***** *** ******* ** **** time.

Industry **** ***** ***

***** *** * ****** ** ******** outcomes ** ****** ********* *** ******** slide. *** ***** **** ******** ** an ******** ****** *** ********** ***** the ******* ***** ****** ** *********** is **** ******** ****.

*** ********* ******** ********* ************ **** a ****** ******* ***** ** * lot ** *****, * *** ** fees, *** **** ** ****** ****** money ******* ** *** ******** ******* its ********** ** * **** ***** to ****** *********:

***’* ** *****, *****, *********, *******, etc. ***** *** *********. **** * possibility ** ********** ** ****** ********** and **** **** *** *** ****** out. *** ***** ****, *** **** origination ****, ***. **** ** **********. The ************ **** *** [*********], *** the ******** **** *** * ***** eye.

*** ****** **** ** ** *** that **** ***** *** **** **** a ********-**** *** ******** ****** **** new *** ********* ***** **** *** traditional *****:

** ****, ** *** ***, **** play ***** **** *** **** **** widespread (******** ** ** *******) ****** that ****** *** ****** *** ***** to **** ***** *********** ******** ***** company *****.

******* ** ** ******** ** ***, there ** ****** *** ****** **** investors **** *** * ******** ****** as * **** **** ******** ** not * **** ***** ** ******. Investor ********** *** ** ****** ***** could **** ** **** ****** ********.

**** ***** **** ******** ***** ****** Ken ************ *** ****** **** ** the ***** ** * ********** ******, financially ******* ********* **** ** ***** recourse **** ***** ** *** ***********:

** ****** ***** ********** **** ********* can't ***, **** *** **** **** claims.

Stock ******

*** *******'* ***** ***** *** ******* ~96% **** **** **** **** $** to ***** ** *****:

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*** *******, **** ****** ******* ** ~$500 ******* *** * ****** ************** of $* ******* ** */***** ***** revenue - ** ************** *** ********* for * ****** *******.

******, *** ***** *** ******** **** in ********, **** * ***** ** the **** ***** ******* ******* *******:

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******** ***** ***** *** ******** ****** cap *** *** ** **********, *** when ******* **** ****-********** ********* **** as ****** ***, **** ****** ********* spell ********. *** ***** *****, ***** from******'* ** ******** ******, ***** *** ******* ***** ** attrition ********* ** ** **:

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Comments (2)
LJ
Lee Jones
Dec 28, 2018
Support Services Group

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???

Source: Lee Jones; Support Services Group

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LT
Larry Tracy
Dec 30, 2018

Yes a horse don’t change his color 

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