la mia non voleva essere un rimprovero ma un invito al rispetto della sensibilità degli altri utenti
Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
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US Civil Complaint Is Credit Negative for DynCorp
Last Tuesday, the US Department of Justice filed a civil complaint against the main operating subsidiary of DynCorp International Inc. (Caa2 stable) alleging contract fraud under the False Claims Act. The complaint is credit negative because it will increase DynCorp’s legal expenses and raises the possibility of a settlement or finding of liability and material additional costs. However, the legal process could take years to resolve and the complaint will not affect the company’s ability to pursue work with the federal government. The complaint alleges that between 2004 and 2008, DynCorp knowingly submitted inflated bills for Iraqbased civilian police training work with the US Department of State. The bulk of the alleged overcharging stemmed from a subcontractor that provided guards, drivers, language translators, and obtained lodging arrangements. The company added its own markup to the subcontractor’s allegedly inflated prices. As the prime contractor, DynCorp was responsible for ensuring fair and reasonable prices. The complaint does not specify the amount of financial damages being sought. The State Department paid more than $135 million for the subcontractor services in question. Presumably some fraction of this amount represents the alleged overcharging and, per the False Claims Act, a finding of liability could result in damages being trebled. DynCorp no longer uses the subcontractor whose activity gave rise to the civil complaint and still leads elements of the original Iraq-based civilian police mission, which has since migrated to the US Army from the State Department. We will track how much DynCorp reserves for the matter and any associated liquidity effect. As of 31 December 2015, the company had only $5 million in reserve to cover all of its legal contingencies. We estimate that DynCorp has around $100 million in total liquidity (cash plus revolver availability), and the company will probably depend on this buffer to meet its operational needs, which includes an ambitious foreign government sales initiative, and scheduled debt amortization over the next two years.
Last Tuesday, the US Department of Justice filed a civil complaint against the main operating subsidiary of DynCorp International Inc. (Caa2 stable) alleging contract fraud under the False Claims Act. The complaint is credit negative because it will increase DynCorp’s legal expenses and raises the possibility of a settlement or finding of liability and material additional costs. However, the legal process could take years to resolve and the complaint will not affect the company’s ability to pursue work with the federal government. The complaint alleges that between 2004 and 2008, DynCorp knowingly submitted inflated bills for Iraqbased civilian police training work with the US Department of State. The bulk of the alleged overcharging stemmed from a subcontractor that provided guards, drivers, language translators, and obtained lodging arrangements. The company added its own markup to the subcontractor’s allegedly inflated prices. As the prime contractor, DynCorp was responsible for ensuring fair and reasonable prices. The complaint does not specify the amount of financial damages being sought. The State Department paid more than $135 million for the subcontractor services in question. Presumably some fraction of this amount represents the alleged overcharging and, per the False Claims Act, a finding of liability could result in damages being trebled. DynCorp no longer uses the subcontractor whose activity gave rise to the civil complaint and still leads elements of the original Iraq-based civilian police mission, which has since migrated to the US Army from the State Department. We will track how much DynCorp reserves for the matter and any associated liquidity effect. As of 31 December 2015, the company had only $5 million in reserve to cover all of its legal contingencies. We estimate that DynCorp has around $100 million in total liquidity (cash plus revolver availability), and the company will probably depend on this buffer to meet its operational needs, which includes an ambitious foreign government sales initiative, and scheduled debt amortization over the next two years.
fedro10
è la somma che fa il totale...
Albertsons Inc. Anleihe: 8,700% bis 01.05.2030 US013104AH74 speravo che quotasse un po meno ma......
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