Cablevision Will Not Be Paying 3 Billion Dollar Special Dividend

[riffjim4069]

Breaking News on Bloomberg (08:35am): Cablevision will not be paying a 3 billion dollar special dividend. Cablevision to hold press conference at 1pm.

[riffjim4069]

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Dec. 19 (Bloomberg) -- Cablevision Systems Corp., the largest cable-television operator in New York, abandoned plans for a $3 billion dividend after discovering it had violated terms its debt agreements. The shares tumbled.
Cablevision will seek waivers from its banks and possibly other lenders while it completes a compliance review, according to a filing today with the U.S. Securities and Exchange Commission. Bethpage, New York-based Cablevision wasn't specific about what covenants were breached.

Shares of Cablevision, down 3.6 percent this year, dropped $2.11 to $21.89 in early trading on the New York Stock Exchange.

[cforrest]

Sweet, sucks for the Dolans. How about they make the company profitable instead of sinking it further into debt. The banks better not give them waivers.

[mkm4]

Full Story

Dec. 19 (Bloomberg) -- Cablevision Systems Corp., the largest cable-television operator in New York, abandoned plans for a $3 billion dividend after discovering it had violated terms its debt agreements. The shares tumbled.
Cablevision will seek waivers from its banks and possibly other lenders while it completes a compliance review, according to a filing today with the U.S. Securities and Exchange Commission. Bethpage, New York-based Cablevision wasn't specific about what covenants were breached.

Probably the covenant that said it would be a STUPID idea to borrow money just to give to stockholders.

From the last board meeting:
"Hmm, lets see, should we borrow from Peter to pay Paul?"
"Sound like a great idea lets do it!"