mREIT RAIT Financial (OTC:RASF) appears to be heading for a pivotal moment. The junky company already had suspended dividends on the 3 preferred issues outstanding and each of them trades under $1/share.
The company has some baby bonds that mature on 8/30/2019. The issue that we refer to is the 7.12% senior notes (OTC:RFTA). The company has not filed their 10-Q for the period ending 3/31/2019 as of yet–so new financials are know since 2018. Additionally they have baby bonds maturing in 2024.
If one looks at the most recent balance sheet (from 12/31/2018) it would show that assets cover their debt–BUT that is probably meaningless at this time since they need to liquidate some assets or con a lender into “refinancing” the debt. The debt coming due is unsecured debt.
Originally the company sold $70 million dollars worth of the offering with another $10 million or so available for over allotments.
With no new financials or news to speak of since 2018 holding any of the companies baby bonds is pure gambling.
What is going to happen?