Question-and-Answer Session
Operator
(Operator instructions) Our first question will come from the line of James Shanahan of Wachovia. Please go ahead.
James Shanahan – Wachovia Securities
Thank you very much and good morning. Couple of quick ones, there was a $43 million tax provision in the quarter and given the operating and GAAP losses, and perhaps you could just expand on that please?
John Erickson
That was basically a reversal of our tax asset. So, with where we stand we had to basically write-off the tax asset because as you evaluate the tax asset you need to look at the light because that you can recovered in the near-term and so that was something we weren’t able to do (inaudible).
James Shanahan – Wachovia Securities
Okay. Another quick one, if you choose to pay dividend with stock assuming of course that you elect to do maybe the 90%, would you actually have to get additional shareholder approval for that or could you do that without shareholder approval?
Malon Wilkus
Sam, would you take that?
Sam Flax
Yes we could without shareholder approval.
James Shanahan – Wachovia Securities
Should we anticipate and in our modeling that you will do that then get for liquidity purposes?
Malon Wilkus
You know as I said earlier this is something for our board to decide and we – and the board hasn’t even began any consideration of it at this time.
Sam Flax
And then, you would be permitted to do variations of 19.10 as well, which would be you could nothing over 18.20 or whatever, so I think it is something we will exert the board that there is no – no decision at this point of time.
James Shanahan – Wachovia Securities
Okay and I would like to ask one more and then I would get back in the queue out of respect for my peers here, but, you breached the covenants under your credit agreements this quarter, which many investors expected, but why was there no 8-K issued at any point during the first two months of ’09, was it not deems to be material or what was your view on why that won’t have been necessary?
Malon Wilkus
Sam would you?
Sam Flax
Sure. A breach of the covenant is not in and of itself an 8-K event only if acceleration is.
John Erickson
The other thing to keep in mind that you know our evaluation process is linked the – you know – and it is probably even as you have seen, I mean, I will use, you know the allies have probably been blended they announced a revision December 31st and 30 days later you know probably their valuation process is, he will review that they can no longer live in the covenant, I think it would – evaluating this illiquid assets it does take a lot of time and obviously this environment takes more time than normal, so even the timeframe determining that is pretty lengthy.
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