CRWN » Topics » Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

These excerpts taken from the CRWN 10-K filed Mar 5, 2009.

Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

        We have a substantial amount of indebtedness. To the extent interest is deferred and added to principal, the indebtedness increases. As of December 31, 2008, our total debt was $1.1 billion, and we had $2.7 million of cash and cash equivalents and $21.4 million available under our bank credit facility to support our operations. Subject to restrictions under our debt agreements, we may also seek to restructure our debt or to engage in an equity or debt financing to cover any operating losses, to finance acquisitions or capital expenditures or for other purposes.

        As a result of our level of debt and the terms of our debt instruments:

    our vulnerability to adverse general economic conditions is heightened;

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    we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;

    we are, and will continue to be, limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;

    our flexibility in planning for, or reacting to, changes in our business and industry will be limited;

    we are sensitive to fluctuations in interest rates;

    our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be impaired; and

    offers to purchase the Company or its assets at prices that may be attractive to stockholders may be limited.

        Our ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors. There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business activities.

        Information concerning our liquidity may be found in Note 1 of our Notes to Consolidated Financial Statements in this Report.

Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

        We have a substantial amount of indebtedness. To the extent interest is deferred and added to principal, the indebtedness increases. As of December 31, 2008, our total debt was $1.1 billion, and we had $2.7 million of cash and cash equivalents and $21.4 million available under our bank credit facility to support our operations. Subject to restrictions under our debt agreements, we may also seek to restructure our debt or to engage in an equity or debt financing to cover any operating losses, to finance acquisitions or capital expenditures or for other purposes.

        As a result of our level of debt and the terms of our debt instruments:

    our vulnerability to adverse general economic conditions is heightened;

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    we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;

    we are, and will continue to be, limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;

    our flexibility in planning for, or reacting to, changes in our business and industry will be limited;

    we are sensitive to fluctuations in interest rates;

    our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be impaired; and

    offers to purchase the Company or its assets at prices that may be attractive to stockholders may be limited.

        Our ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors. There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business activities.

        Information concerning our liquidity may be found in Note 1 of our Notes to Consolidated Financial Statements in this Report.

Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to
plan for or respond to changes in our business.



        We have a substantial amount of indebtedness. To the extent interest is deferred and added to principal, the indebtedness increases. As
of December 31, 2008, our total debt was $1.1 billion, and we had $2.7 million of cash and cash equivalents and $21.4 million available under our bank credit facility to
support our operations. Subject to restrictions under our debt agreements, we may also seek to restructure our debt or to engage in an equity or debt financing to cover any operating losses, to
finance acquisitions or capital expenditures or for other purposes.



        As
a result of our level of debt and the terms of our debt instruments:





    our vulnerability to adverse general economic conditions is heightened;


11









HREF="#bg75701a_main_toc">Table of Contents







    we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability
    of cash for other purposes;



    we are, and will continue to be, limited by financial and other restrictive covenants in our ability to borrow additional
    funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;



    our flexibility in planning for, or reacting to, changes in our business and industry will be limited;


    we are sensitive to fluctuations in interest rates;


    our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general
    corporate purposes or other purposes may be impaired; and



    offers to purchase the Company or its assets at prices that may be attractive to stockholders may be limited.



        Our
ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors.
There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business
activities.



        Information
concerning our liquidity may be found in Note 1 of our Notes to Consolidated Financial Statements in this Report.




Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to
plan for or respond to changes in our business.



        We have a substantial amount of indebtedness. To the extent interest is deferred and added to principal, the indebtedness increases. As
of December 31, 2008, our total debt was $1.1 billion, and we had $2.7 million of cash and cash equivalents and $21.4 million available under our bank credit facility to
support our operations. Subject to restrictions under our debt agreements, we may also seek to restructure our debt or to engage in an equity or debt financing to cover any operating losses, to
finance acquisitions or capital expenditures or for other purposes.



        As
a result of our level of debt and the terms of our debt instruments:





    our vulnerability to adverse general economic conditions is heightened;


11









HREF="#bg75701a_main_toc">Table of Contents







    we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability
    of cash for other purposes;



    we are, and will continue to be, limited by financial and other restrictive covenants in our ability to borrow additional
    funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;



    our flexibility in planning for, or reacting to, changes in our business and industry will be limited;


    we are sensitive to fluctuations in interest rates;


    our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general
    corporate purposes or other purposes may be impaired; and



    offers to purchase the Company or its assets at prices that may be attractive to stockholders may be limited.



        Our
ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors.
There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business
activities.



        Information
concerning our liquidity may be found in Note 1 of our Notes to Consolidated Financial Statements in this Report.




These excerpts taken from the CRWN 10-K filed Mar 12, 2008.

Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

        We have a substantial amount of indebtedness. As of December 31, 2007, our total debt was $1.1 billion, and we had $2.0 million of cash and cash equivalents and $60.5 million available under our bank credit facility subject to the approval of our Board of Directors to cover the negative cash flow resulting from our current operations. Subject to restrictions under our debt agreements, we may also seek equity or debt financing from time to time to cover our operating losses, to finance acquisitions or capital expenditures or for other purposes.

        As a result of our level of debt and the terms of our debt instruments:

    our vulnerability to adverse general economic conditions is heightened;

    we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;

    we are and will continue to be limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;

    our flexibility in planning for, or reacting to, changes in our business and industry will be limited;

    we are sensitive to fluctuations in interest rates; and

    our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be impaired.

        Our ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors. There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business activities.

        Information concerning our liquidity may be found in Note 1 of our Notes to Consolidated Financial Statements in this Report.

Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely
limit our ability to plan for or respond to changes in our business.



        We
have a substantial amount of indebtedness. As of December 31, 2007, our total debt was $1.1 billion, and we had $2.0 million of cash and cash equivalents and
$60.5 million available under our bank credit facility subject to the approval of our Board of Directors to cover the negative cash flow resulting from our current operations. Subject to
restrictions under our debt agreements, we may also seek equity or debt financing from time to time to cover our operating losses, to finance acquisitions or capital expenditures or for other
purposes.



        As
a result of our level of debt and the terms of our debt instruments:





    our
    vulnerability to adverse general economic conditions is heightened;


    we
    will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;


    we
    are and will continue to be limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into
    transactions with affiliates or conduct mergers and acquisitions;


    our
    flexibility in planning for, or reacting to, changes in our business and industry will be limited;


    we
    are sensitive to fluctuations in interest rates; and


    our
    ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be
    impaired.



        Our
ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors.
There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business
activities.



        Information
concerning our liquidity may be found in Note 1 of our Notes to Consolidated Financial Statements in this Report.



This excerpt taken from the CRWN 10-K filed Mar 8, 2007.

Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

We have a substantial amount of indebtedness. As of December 31, 2006, our total debt was $975.7 million and we had $14.0 million of cash and cash equivalents and $42.4 million available under our bank credit facility subject to the approval of our Board of Directors to cover the negative cash flow resulting from our current operations. Subject to restrictions under our debt agreements, we may also seek equity or debt financing from time to time to cover our operating losses, to finance acquisitions or capital expenditures or for other purposes.

As a result of our level of debt and the terms of our debt instruments:

·       our vulnerability to adverse general economic conditions is heightened;

·       we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;

·       we are and will continue to be limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;

·       our flexibility in planning for, or reacting to, changes in our business and industry will be limited;

·       we are sensitive to fluctuations in interest rates; and

·       our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be impaired.

Our ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors. There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business activities.

11




Information concerning our liquidity may be found in Note 1 of our Notes to Consolidated Financial Statements in this Report.

This excerpt taken from the CRWN 10-K filed Mar 29, 2006.

Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

We have a substantial amount of indebtedness. As of December 31, 2005, our total debt was $972.4 million and we had $15.9 million of cash and cash equivalents and $10.0 million available under our bank credit facility subject to the approval of Hallmark Cards to cover the negative cash flow resulting from our current operations. In addition, in March 2006, we signed a waiver and standby purchase agreement, which converted $70.0 million of payables to a Hallmark Cards affiliate into a note payable. This amount currently is not included in our calculation of total debt. Subject to restrictions under our debt agreements, we may also seek equity or debt financing from time to time to cover our operating losses, to finance acquisitions or capital expenditures or for other purposes.

As a result of our level of debt and the terms of our debt instruments:

·       our vulnerability to adverse general economic conditions is heightened;

·       we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;

·       we are and will continue to be limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;

·       our flexibility in planning for, or reacting to, changes in our business and industry will be limited;

·       we are sensitive to fluctuations in interest rates; and

·       our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be impaired.

Our ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors. There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business activities.

Information concerning our liquidity may be found in Note 1 of our Notes to Consolidated Financial Statements in this Report.

This excerpt taken from the CRWN 10-Q filed Aug 9, 2005.
Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

 

We have a substantial amount of indebtedness. As of June 30, 2005, our total debt was $777.1 million and we had $5.6 million of cash and cash equivalents. In addition, we may borrow the remaining $41.0 million available borrowing under our bank credit facility to cover the negative cash flow resulting from our current operations. Subject to restrictions under our debt agreements, we may also seek equity or debt financing from time to time to cover our operating losses, to finance acquisitions or capital expenditures or for other purposes.

 

37



 

As a result of our level of debt and the terms of our debt instruments:

 

our vulnerability to adverse general economic conditions is heightened;

 

we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;

 

we are and will continue to be limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;

 

our flexibility in planning for, or reacting to, changes in our business and industry will be limited;

 

we are sensitive to fluctuations in interest rates; and

 

our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be impaired.

 

Our ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors. There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business activities.

 

This excerpt taken from the CRWN 10-Q filed Jun 15, 2005.
Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

 

We have a substantial amount of indebtedness. As of March 31, 2005, our total debt was $894.6 million and we had $14.7 million of cash and cash equivalents. In addition, we may borrow the remaining $10.0 million available borrowing under our bank credit facility to cover the negative cash flow resulting from our current operations. Subject to restrictions under our debt agreements, we may also seek equity or debt financing from time to time to cover our operating losses, to finance acquisitions or capital expenditures or for other purposes.

 

As a result of our level of debt and the terms of our debt instruments:

 

our vulnerability to adverse general economic conditions is heightened;

 

we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;

 

we are and will continue to be limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and

 

33



 

acquisitions;

 

our flexibility in planning for, or reacting to, changes in our business and industry will be limited;

 

we are sensitive to fluctuations in interest rates; and

 

our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be impaired.

 

Our ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors. There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business activities.

 

This excerpt taken from the CRWN 10-K filed May 27, 2005.

Our substantial indebtedness could adversely affect our financial health, and the restrictions imposed by the terms of our debt instruments may severely limit our ability to plan for or respond to changes in our business.

We have a substantial amount of indebtedness. As of December 31, 2004, our total debt was $889.1 million and we had $12.1 million of cash and cash equivalents. In addition, as of March 31, 2005, we could borrow the remaining $10.0 million available borrowing under our bank credit facility to cover the negative cash flow resulting from our current operations. Subject to restrictions under our debt agreements, we may also seek equity or debt financing from time to time to cover our operating losses, to finance acquisitions or capital expenditures or for other purposes.

As a result of our level of debt and the terms of our debt instruments:

·       our vulnerability to adverse general economic conditions is heightened;

·       we will be required to dedicate a portion of our cash flow from operations to repayment of debt, limiting the availability of cash for other purposes;

·       we are and will continue to be limited by financial and other restrictive covenants in our ability to borrow additional funds, consummate asset sales, enter into transactions with affiliates or conduct mergers and acquisitions;

·       our flexibility in planning for, or reacting to, changes in our business and industry will be limited;

·       we are sensitive to fluctuations in interest rates; and

·       our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes may be impaired.

Our ability to meet our debt and other obligations and to reduce our total debt depends on our future operating performances and on economic, financial, competitive and other factors. There can be no assurance that our leverage and such restrictions will not materially and adversely affect our ability to finance our future operations or capital needs or to engage in other business activities.

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