Freddie Mac's forbearance policies give servicers the discretion to suspend a borrower's mortgage payments for up to three months or reduce payments for up to six months.
Under Freddie Mac's requirements servicers must not accrue or collect late charges from the borrower during a short-term forbearance or any subsequent repayment plan period if the borrower is paying according to the forbearance agreement.
Although certain economic indicators have hinted at the start of an economic upturn, Fitch does not expect pressure to ease on deferment and forbearance
levels anytime soon.
You should also know that such statements are not guaranties of future performance and are subject to risks, uncertainties and assumptions, including, but not limited to, our ability to negotiate additional forbearances
, our ability to maintain compliance with the terms and covenants of our Amended Credit Facility, our ability to consummate any strategic alternatives, our ability to discover reserves that may be extracted on a commercially viable basis, our ability to accurately estimate oil and gas reserves, intense competition, environmental risks and general economic conditions including the price of oil and gas and the global credit crisis.
However, if the Company is unable to obtain forbearances
from these creditor groups, or if substantial amounts of the Company's debt are accelerated as a result of a default, the Company may be forced to seek protection under the Bankruptcy Code.
A going-concern risk factor has been included in our public securities filings due to our recurring operating losses, current strain on cash flow, $4,200,000 obligation to our former preferred stockholders and our forbearance
agreement with Imperial Bank which expires on December 29, 2000.
The agreement, which is subject to the satisfaction of certain conditions, includes continued forbearance
by WorldCom from taking any action to implement WorldCom's notice of intent to disconnect all of NTC's telecommunication services no later than Aug.
Daisytek has sought to negotiate a forbearance