Posted 10/16/2012 - 10:51:49 AM
SAN FRANCISCO—Mobile technology, applications and bandwidth were among the key issues addressed during LodgeNet Interactive Corporation's 5th annual technology symposium at the W Hotel, here.
The event also marked the first public appearance for new president/CEO Richard Battista, who joined the company from News Corp/Fox companies a little more than a month ago. Battista noted, "We will explore strategic alternatives to do what's best for the company. We're 100% focused on operational excellence."
In addition, Battista noted the in-room entertainment company's focus has shifted slightly in the face of increased competition. "For a lot of years we weren't worried about stealing eyeballs, but we have to find ways to compete every day," he said.
In addition, LodgeNet has reached a forbearance agreement regarding its credit agreement with lenders holding a majority of the loans thereunder.The company’s lenders have agreed not to exercise their rights, up to and through Dec. 17, 2012, primarily with respect to the company’s breach of its leverage covenant under the credit facility. Principal and interest due under the credit facility on Sept. 30, 2012, were paid.
In light of this agreement and LodgeNet’s need to manage its liquidity, it has deferred payment of the preferred dividend schedule to be paid on Oct. 15, 2012, on its 10% Series B cumulative perpetual convertible shares. The deferred dividend that was scheduled to be paid on Oct. 15, 2012, in the amount of $1.4 million, will accrue in accordance with the terms of the Preferred Stock.
Due to the ongoing nature of LodgeNet’s discussions with its lenders and consideration of strategic alternatives, the company will not hold a third quarter 2012 quarterly earnings call. The company expects to file its third quarter 2012 results on Form 10-Q with the Securities and Exchange Commission on or before Nov. 9, 2012.