$55 million term loan and $20 million revolving line of credit from GMAC-RFC
$80 million from Vestar Capital Partners of New York City
$50 million Thoma Cressey, plus another $10 million
So, with over $200 million invested, what do they get?
Two hospitals that are paddling in red ink.
One that has gone up and is headed down.
Two that are reasonably profitable. (However, nothing close to what was forcasted....) They're the ones absorbing the losses of the other two.
This, my friends, is called venture capital. They would have done
better investing in liquor stores and pawn shops. With the bottom falling out of sub-prime real estate loans, one wonders if this is in the same catagory. Banks and lending institutions all over the country are feeling the pain--just look at the stock market.
But, don't worry, GE only lost $17 million of the $25 million they had in Arcon. (Source: Final Decision, Sharon Hospital.)
I really want to see how Michael Browder's vision for the company is going to pull this one out of the fire....
Thursday, November 15, 2007
Can You Say: Sub-Prime?....11/24
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4 comments:
after adding up the total profit and loss for the year, Essent is a company that is at best barely breaking even. I know several not-for-profit hospitals that are doing better than this bunch- I work at one. And this facility empowers its employees to do their best to deliver patient care to the area.
Wish I could say the same about Essent.....
With the thin bottom line, one has to wonder if the big-money boys may either try to make a go of this mess or cut their losses. Personally, I vote for the latter- they've hung with Hud and his circus long enough, and there's too much money out there to go play doctor.
Will Browder and the boys come up with the $$ for the cardio? Not if the plan is to slash costs and sell. Look for the moving truck at A.J's.
Speaking of profits...how many lawsuits does essents have in the works?? I understand @ least four.
12:34,
Are you talking about lawsuits filed by Essent, filed against Esseent, or both? It must take up an awful lot of time and coin for this company to either pursue or defend itself from lawsuits.
Now, what does THAT say about this company? How do the Essent tail-kissers spin that?
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