Yesterday Allscripts disclosed private offering of $200 million convertible senior notes due 2027. If you follow the financials the senior notes are: "A bond that takes priority for receipt of principal and interest over other debt securities sold by the issuer in the event the issuer goes bankrupt". Maybe management knows there is no saving this company.
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Who the hell would buy those notes? Worst investment I ever saw!
Or a product line sale. OneContent was a windfall.
Bankruptcy? Not as likely as an acquisition.
The leadership has survived by whitewashing troubling financial performance with acquisitions for a number of years. I suspect they are about to announce another acquisition. Given the amount of money raised, potential targets could be Meditech or maybe Nextgen / eClin. I know they lost the bidding wars for the remnants of GE's healthcare software division (that was combined with Athenahealth as a private PE backed venture).
Another rounds of layoffs before Christmas?
So this has morphed into a site for paranoia and fear mongering? If those posting their business recommendations really knew what they were doing, they'd be running the company company. Instead the come here to b–ch. Sad!
Private offering? Who or what bank would be dumb enough to put any more money into this t–d. I guess you could put up Paul and Rick’s homes up as collateral. Put up Sunrise code to securitize it? Sounds like a poorly played game of monopoly at this point. Start mortgaging all the houses and hotels to survive another roll of the dice.
Odds of bankruptcy continue to grow. Around 40% when last reviewed. Flip a coin. Bankruptcy would be a good thing for them anyways. Their AP days to pay aren’t very good either. The point is.. Allscripts gave up their best assets to survive another quarter which includes its “people”.
May be. May be not. It's pointless to continue stirring the pot with 'may bes'. If you're that worried, leave.
I think you're on to something. See this from US News:
"THE YEAR WAS 2009 AND General Motors Co. (ticker: GM) had just declared bankruptcy. Financial carnage ensued.
GM stock plummeted to zero value. People who owned it lost everything. Those invested in GM common bonds tried to collect something, and grabbed at pennies – about 20 cents on the dollar. Even when the company resurrected, those with old stock couldn't trade it in for new stock.
Only one group of people was able to collect close to 100 percent of the money they had invested in the company.
"The senior secured debt holders got 100 percent of their money back. They were the first ones in line," says Michael Brady, president of Generosity Wealth Management in Boulder, Colorado."