AMW is now trading at a new all time low. If you are still in this disaster, you are feeling the pain. Today AMW issued a press release stating it had received a letter of non-compliance from the American Stock Exchange. The AMEX has two major concerns- the company’s failure to file its financial statements on time, and the fact that they are in default on a note for $6.2 million and counting with Laurus Funds.
The first issue is easily remedied- just file the damn 10Q. Nearly every other company in the public markets does it- I don’t know why AMW cannot seem to meet their reporting obligation in a timely manner. Certainly, it gives no comfort in terms of management’s capabilities.
The second issue is far more menacing. The issue of the default on the note. One of two things will happen- either they will make some kind of deal with Laurus and come out of default, or they will probably have to file for bankruptcy to try to protect their assets from being seized by Laurus. I have not reviewed the terms of the notes, but I would guess AMW pledged its assets against the note, and Laurus has a UCC filing on the assets. I’m no lawyer, but I believe this means Laurus would get the assets even if bankruptcy is filed. On the potential positive side, I’m sure Laurus doesn’t want a lengthy legal battle, and has no interest in owning the two remaining bottling facilities.
Not much to talk about as far as the chart is concerned, but another new all time low on a big volume spike. I don’t know what will happen here and have no contact with management, but it sure looks grim. You have to make your own decision about what to do, but it sure seems at this point the stock is a sale for a tax loss. I wish I hadn’t been so right when the stock traded up briefly to $.40 in September about taking some or all of your money off the table.
If anyone has any input on whether they would still retain their bottling plants in a bankruptcy, that would be helpful. Please post a comment.