| Abstrakt: |
The article focuses on the leveraged buyout of Seaman Furniture Co. for $354 million, more than 90% of its debt, by Kohlberg Kravis Roberts & Co. Deloitte Haskins & Sells, Seaman's accountant, raised doubts about the 56-year-old company's chances of survival. Seaman did not make a $3.1 million interest payment in August 1989 and needed to restructure its crushing debt load. The furniture retailer's financial statements make it clear that debt is the problem. Seaman posted operating profits for the fiscal year ended April 30, 1989 of $23.2 million, but that was not nearly enough to cover its $44.2 million in interest costs. |
