ASCMA / Moni Problems Deepen, Lenders Terminate Support Agreement

By Dan Gelinas, Published Dec 28, 2018, 10:01am EST

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.

********

*** *****-********* ****** ** generally ******** ** *** 3rd ******* ********** ******* in ***** ******* ***** ADT *** ******. *******, in ****** ****, **** tried ********* ********** **** *** recently ****** **** ** Brinks **** ********. **** ** *********, the ************ * ******* **** lenders**** *** ******* ******** note ******** ****** **** could *********** **** ************ the ******* ****** ****.

*** ******* ****** ** its*-****** ******** **, ****, that ** ******** *** agreement **** * ***** of ******* *** ************ the ******* ********** **** agreement:

*** ********* ********** **** B-2 ******* (** ******* in *** ******* *********) provided ******, **** *** the ********** *********** **** a ****** ** *********** under *** ******* *********.

*** *-* ***** **** Ascent ****** * ***** release *** ******* *********** on ***** ****:

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*******, ******** ******* **** ******'* site***** ** ******* *** lenders *********** *** ******* Agreement, *** ****** ****** that ****** ********* *** previous ******, ** **** in *** ********* *****:

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******* ****** ** *** breached/terminated ********* ** *** Termination ** *** ********* to *** ****** ********* as **** *****:

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*** *****-***********-* ***** ******** **, 2018*** *** ********* **** several *******, ********* ******** the ******* ** ***** new ***** *** **** reduce *** ********* ****** commitments ***** *** ********* portion ** *** ****** facility, ***** ***** ******:

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*** ******* **** **** had ** ******* ** this ****.

**** **** ******* *** to ******** ******** ********** banker******** *******, *** ****** *****, which **** ** ***** not ******* ** **** time.

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

***** *** * ****** of ******** ******** ** Ascent ********* *** ******** slide. *** ***** **** scenario ** ** ******** filing *** ********** ***** the ******* ***** ****** to *********** ** **** sizeable ****.

*** ********* ******** ********* professional **** * ****** outcome ***** ** * lot ** *****, * lot ** ****, *** lots ** ****** ****** money ******* ** *** industry ******* *** ********** as * **** ***** to ****** *********:

***’* ** *****, *****, posturing, *******, ***. ***** the *********. **** * possibility ** ********** ** settle ********** *** **** will *** *** ****** out. *** ***** ****, new **** *********** ****, etc. **** ** **********. The ************ **** *** [EXPLETIVE], *** *** ******** will *** * ***** eye.

*** ****** **** ** to *** **** **** would *** **** **** a ********-**** *** ******** notion **** *** *** companies ***** **** *** traditional *****:

** ****, ** *** way, **** **** ***** into *** **** **** widespread (******** ** ** opinion) ****** **** ****** and ****** *** ***** to **** ***** *********** oriented ***** ******* *****.

******* ** ** ******** or ***, ***** ** always *** ****** **** investors **** *** * bankrupt ****** ** * sign **** ******** ** not * **** ***** to ******. ******** ********** may ** ****** ***** could **** ** **** stocks ********.

**** ***** **** ******** legal ****** *** ************ who ****** **** ** the ***** ** * bankruptcy ******, *********** ******* investors **** ** ***** recourse **** ***** ** get ***********:

** ****** ***** ********** then ********* ***'* ***, they *** **** **** claims.

Stock ******

*** *******'* ***** ***** has ******* ~**% **** year **** **** $** to ***** ** *****:

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*** *******, **** ****** revenue ** ~$*** ******* has * ****** ************** of $* ******* ** 1/100th ***** ******* - an ************** *** ********* for * ****** *******.

******, *** ***** *** suffered **** ** ********, with * ***** ** the **** ***** ******* further *******:

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******** ***** ***** *** dropping ****** *** *** bad ** **********, *** when ******* **** ****-********** attrition **** ** ****** has, **** ****** ********* spell ********. *** ***** below, ***** **********'* ** ******** ******, ***** *** ******* curve ** ********* ********* to ** **:

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Comments (2)

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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Yes a horse don’t change his color 

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