Thomson is putting Grass Valley up for sale. The Parisian tech giant
today said the board approved divesting the division, along with its
Premier Retail Networks digital signage business. Thomson has received
“expressions of interest” in the business units, wire reports indicate.
Thomson announced the move this morning as it warned of breaching loan
covenants. Some of the company’s private placements require that debt
doesn’t exceed net worth.
“Based on preliminary unaudited
data, it is likely that when the 2008 audited consolidated financial
statements are completed and available at the latest, by the end of
April 2009, this covenant will be breached.” Thomson’s press release stated.
Thomson
estimated its debt to be nearly $2.8 billion. It reported having around
$1 billion in cash (775 million euros) at the end of the year; money it
drew down from the balance remaining on its syndicated credit facility.
Market cap in France was around $463 million this morning with shares
trading at $1.42 after tumbling 15 percent on the news.
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