Hi guys, new board follower here. I have $SPDC on my watch list. On Dec. 17th they announced new management. I'm still on the sidelines waiting to see what the new management has in store for the future of the company.
Quote:Speed Commerce, Inc. (NASDAQ:SPDC), a leading provider of ecommerce technology and omni-channel solutions for retailers, today announced that Dalton Edgecomb and Bruce Meier, both of Winter Harbor LLC, have been named Interim Chief Executive Officer and Interim Chief Financial Officer, respectively. In these capacities, Messrs. Edgecomb and Meier will lead efforts to maintain the Company’s near-term liquidity and strengthen its financial performance. They succeed Richard Willis and Terry Tuttle, who have resigned effective immediately.
Mr. Edgecomb possesses more than 20 years of experience advising companies through cash management and cost reduction, capital structure refinancing, crisis management and business plan development for restructuring purposes. He has participated in more than 50 successful turnaround engagements in a variety of industries including food and agribusiness, retail, textiles, healthcare, engineering and construction, energy, transportation, and industrial manufacturing.
Speed Commerce also announced that it has entered into a forbearance agreement (the “Forbearance Agreement”) with Garrison Loan Agency Services LLC, as Administrative Agent and Collateral Agent and the lenders from time to time party thereto (collectively, the “Lenders”) to the Company's Amended and Restated Credit and Guaranty Agreement dated as of November 21, 2014, as amended (the “Credit Agreement”), in connection with the Company’s failure to comply with certain covenants under the Credit Agreement.
“We anticipate that the steps we have taken today will accelerate progress towards a stronger and more financially-sound company, and we look forward to ongoing and productive discussions with our lenders in that regard,” Mr. Edgecomb stated. “In the meantime, our focus will remain on business continuity and the same excellent level of service our customers have come to expect. We appreciate the support of all our stakeholders, in particular our lenders who have provided additional funding to the Company and who have now provided this forbearance agreement which enables us to work towards enhanced financial flexibility and a brighter future.”
Under the terms of the Forbearance Agreement, the Company’s Lenders will refrain from exercising any rights or remedies that they may have under the Credit Agreement or otherwise in respect of the Company's default of the terms of the Credit Agreement for 45 days, or until January 30, 2016, unless a breach of the Forbearance Agreement occurs. If the Forbearance Agreement should be breached, or is not extended, the Company’s Lenders would then be entitled to exercise any of their rights under the Credit Agreement, including, but not limited to, the acceleration of all debt obligations under the Credit Agreement. There can be no assurance that the terms of the Forbearance Agreement will be extended, or that the Company will not be in breach of the terms of the Forbearance Agreement prior to its expiration.
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