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Controlling Shareholder
9 Months Ended
Jun. 30, 2012
Controlling Shareholder [Abstract]  
Controlling Shareholder

As of June 30, 2012, $10,000 remains outstanding on the Tontine Term Loan, with $0 in accrued interest. For additional information, please refer to Note 4, “Debt – The Tontine Term Loan” of this report.

 

Although Tontine has not indicated any plans to alter its ownership level, should Tontine reconsider its investment plans and sell its controlling interest in the Company, a change in ownership would occur. A change in ownership, as defined by Internal Revenue Code Section 382, could reduce the availability of net operating losses for federal and state income tax purposes. Furthermore, a change in control would trigger the change of control provisions in a number of our material agreements, including our revolving credit facility, bonding agreements with our sureties and employment contracts with certain officers and employees of the Company.

 

Tontine Capital Partners, L.P. and its affiliates own the majority of our common stock. As a significant stakeholder, Tontine provides strategic, general corporate, operational, organizational and financial advice to our board of directors and management.   Although such advice may be considered by the board and management, neither the board nor management is under any legal obligation to follow such advice.