ASCMA / Moni Problems Deepen, Lenders Terminate Support Agreement
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]
In this note, we examine ASCMA's problems and the risk of bankruptcy for one of North America's largest security monitoring companies.
********
*** *****-********* ****** ** ********* ******** as *** *** ******* ********** ******* in ***** ******* ***** *** *** Vivint. *******, ** ****** ****, **** tried ********* ********** **** *** ******** ****** Moni ** ****** **** ********. **** ** *********, *** ************ * ******* **** *********** *** ******* ******** **** ******** offers **** ***** *********** **** ************ the ******* ****** ****.
*** ******* ****** ** ****-****** ******** **, ****, **** ** breached *** ********* **** * ***** of ******* *** ************ *** ******* terminated **** *********:
*** ********* ********** **** *-* ******* (as ******* ** *** ******* *********) provided ******, **** *** *** ********** Noteholders **** * ****** ** *********** under *** ******* *********.
*** *-* ***** **** ****** ****** a ***** ******* *** ******* *********** on ***** ****:
*******, ******** ******* **** ******'* ********* ** ******* *** ******* *********** the ******* *********, *** ****** ****** that ****** ********* *** ******** ******, as **** ** *** ********* *****:
******* ****** ** *** ********/********** ********* is *** *********** ** *** ********* to *** ****** ********* ** **** below:
*** *****-***********-* ***** ******** **, ******* *** ********* **** ******* *******, including ******** *** ******* ** ***** new ***** *** **** ****** *** revolving ****** *********** ***** *** ********* portion ** *** ****** ********, ***** other ******:
*** ******* **** **** *** ** 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 ***** ** *****:
*** *******, **** ****** ******* ** ~$500 ******* *** * ****** ************** of $* ******* ** */***** ***** revenue - ** ************** *** ********* for * ****** *******.
******, *** ***** *** ******** **** in ********, **** * ***** ** the **** ***** ******* ******* *******:
******** ***** ***** *** ******** ****** cap *** *** ** **********, *** when ******* **** ****-********** ********* **** as ****** ***, **** ****** ********* spell ********. *** ***** *****, ***** from******'* ** ******** ******, ***** *** ******* ***** ** attrition ********* ** ** **:
**… ** **** * **** ******, nefarious, ******** ** *********** **********????
**** ******** *** ***** ** *** original *******, ***********. * ***** ******** provided ******** ******* *******, *** * new *********, ***-***** *** *** ******** of * ***** ****** **** ******* monitoring **** ***** ** ** ***** (not **** ** ******* ** *****). Shortly **********, **** ********** *** ****, destroying ****** ** *******/****** *********, **** purchased *** ****** *** ******* (******** of ********** *********) *** ********* *** remote-monitoring ******** ** *****, ******* ***********. The ******* *********** **** *** *** same ******** ******(*** ***** ******* ******** monitoring *********) ****** ******.**** ** *** ******* ****** *****???
******: *** *****; ******* ******** *****