Monday, June 1, 2009

Perusing the filings 06/01/09

A few weeks ago, AlphaNinja speculated on Lear's possible funding/financing options. Today the company has decided to skip an interest payment as they chat with lenders and others about how to proceed.

I'd like to be optimistic on the potential outcome here, but when AlphaNinja contacted Lear, it was made clear that the company would not be acting solely with the interests of shareholders in mind.

Again, what AlphaNinja was told - "the management and board's first responsibility is to the shareholder. But when we get in a potentially bad situation, our lawyers tell us that we have to take steps to protect the whole enterprise value, including debt holders and employees."

And the market's verdict? Up 14%

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