SPF going BK?
Some of you know SPF has been my HB whipping boy for about a year now.
Its CEO, Steven Scarborough, abruptly resigns yesterday after leveraging SPF to levels never seen in the company's history and recently amends his bonus plan?
The "new" CEO is a board member who was making token open market share purchases late last year just before SPF issued negative press releases? Now his salary is likely to cover those share puchase costs in a very short period of time.
In December, SPF tells shareholders it has no plans for bankruptcy after issuing a very dilutive convertible offering and violating its debt covenants twice plus about to violate for a third time?
In February, management brags to shareholders about how much cash they have in the bank but fails to tell them that spend obligations would wipe that cash out in a very short period of time.
Now, Scarborough "abruptly" resigns and likely to get a very generous severence package from his newly amended bonus plan.
When the new CEO was asked on the conference call the following:
"Just want to confirm straight up.....the thinking here is not to take the company into bankruptcy soon.....?"
The new CEO's response:
"I don't think it's appropriate to to comment on that at this call.............."
Folks, anyone think BK planning has been in the works for months? SPF has been building out its communities and paying down less relative debt than just about any public HB. It has almost six times the debt versus backlog. Now many of its specs are complete and ready to generate cash under a reorganized debt structure.
Its executives recently got bonused millions shortly after they eliminated the shareholders' dividend(interestingly, the CEO didn't get a bonus at the time). But not to be left out in the cold, Scarborough will likely grab millions as he runs out the door before resolving the negotiations on the company's violation of its debt covenants for the FOURTH time.
It has been an amazing ride to watch these guys mislead shareholders and put millions into their pockets.
Now, the "independent" board member that was supposed to protect shareholders is taking over and it's his turn in the honey pot? What has happened to character in corporate America?