Abandon Ship! Unraveling HearUSA Part 19

Ship’s log for the HearUSA Enterprise,March-May, 2011. March 17, 2011:  Siemens moves to exercise its rights as a secured creditor to take over HearUSA in an SEC petition containing the reassuring note that it “plans to continue operating HearUSA’s business, but … make significant changes to make them more profitable…”  Comment:  It’s about time. March 16-19,…

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To Be or Not To Be: Unraveling HearUSA part 18

Last I checked, HearUSA was set to perish on the railroad tracks because it couldn’t or wouldn’t pay its loans to Siemens.{{1}}[[1]]Despite conflicting reports,  HearUSA claimed in its 2009 SEC Annual Report  that “The Company repaid approximately $8.1 million of Siemens debt from the proceeds of this transaction during 2009, as required under the agreement…

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The Giant Stirs: Unraveling HearUSA Part 14

As the end of 2008 approached, HearUSA, Inc.,  needed to sell assets to make its payables because–according to insiders–“everybody” (i.e., suppliers) was sending letters threatening Chapter 11 proceedings against HearUSA.   The stock tanked after October of that year, as the chart shows.  Trade payables to Siemens alone amounted to about $10 million.  Predictably, HearUSA…

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Read This and Weep: Unraveling HearUSA, part 13

HearUSA showed a profit in each year from 2001 to 2003 based on the aggregate individual office production and expenses.  HearUSA could have started retiring some of its debt.  Instead, with HEARx management now firmly holding HearUSA reins, executive compensation{{1}}[[1]]At least $1.29 million for the top four offices in 2003. For that year,  Dr. Brown…

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Who’s in Charge?: Unraveling Hear USA, part 12

Alas and alack, HearUSA’s honeymoon was short and the HEARX-Helix marriage was not a happy one.  From the get go, corporate cultures clashed as top players came out fighting for control. In one corner, Steve Forget represented Helix. In the other corner, Dr Brown and Steve Hansbrough were the HEARx  team. HEARx culture prevailed. West…

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