American Capital says auditors remove "going concern" clause

July 1 (BestGrowthStock) – American Capital Ltd (ACAS.O: ) said on
Wednesday its accounting firm removed the “going concern”
paragraph from its 2009 audit report for the buyout firm,
following a successful debt restructuring at the company.

On Monday, the publicly traded private equity firm said it
restructured its unsecured revolving line of credit facility
and closed an exchange offer, reducing debt by more than a
billion dollars.

The company also said although it can pay only the
necessary dividend to maintain its status as a regulated
investment company, there is no restriction in paying out
dividends if certain conditions are met in future.

These conditions include the company satisfying 200 percent
asset coverage, staying in compliance with certain financial
covenants, and debt not exceeding $1.4 billion.

As part of the latest restructuring — a 14 month long
affair — American Capital had to shell out $1 billion in cash,
apart from issuing $1.3 billion in new debt, maturing in 2013.

American Capital shares closed at $4.82 Wednesday on
Nasdaq. They have gained significantly since hitting a 52-week
low of $2.08 last September.
(Reporting by Anurag Kotoky in Bangalore; Editing by Maju
Samuel)

American Capital says auditors remove “going concern” clause