Date: Fri May 19 2000 - 19:16:44 PDT
[With a cash burn of 23.8M in the latest quarter ending March 31, I
wonder how long this will last? --Linda]
MicroStrategy CEO backs credit line
By Matt Andrejczak, CBS Marketwatch.com
Last Update: 11:57 AM ET May 16, 2000
WASHINGTON (CBSMW)--Michael J. Saylor, chairman and chief executive
officer of MicroStrategy Inc., the troubled e-business software
maker, has personally backed the company's renegotiated $28.6
million line of credit.
According to a Securities and Exchange Commission filing released on
Monday, Saylor and an entity controlled by him have guaranteed the
modified line of credit that expires on May 31, 2001. The credit line
bears interest at LIBOR plus 1.75 percent and requires
monthly payments of interest.
Vienna, Va.-based MicroStrategy (MSTR: news, msgs) was forced to
renegotiate the credit line after it failed to comply with all of the
covenantscontained in the agreement as of March 31, the 10-Q filing
The company has drawn $7.4 million under the new line of credit to
Shares of once high-flying MicroStrategy have plunged
from a mid-March intraday high of 333 after the company said it would
have to restate its revenue figures for the past two years to comply
with recent SEC guidelines.
MicroStrategy is currently under a formal investigation with the SEC
and cooperating with the agency.
Shares of MicroStrategy were down 5/8 to 23 1/4 in recent trading.
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