[PrivCoTeam]

Fortune just reported that insider's confirm LivingSocial was down to JUST $28M IN CASH in February right before taking yesterday's financing? If my math is right, looking at their 2012 financials on PrivCo: http://www.privco.com/livingsocial-receives-emergency-110m-c...

Their operating expenses are about $1.4 Billion/year (Revenue + Operating loss = about $1.4 Billion they spend a year). That's $120 Million a month. $4 million a day. THEY WERE DOWN TO JUST 7 DAYS OF CASH! How is that NOT the very definition of a "distressed financing" situation? T

hey were down to a dangerously low level of cash and regardless of the financing terms or structured as technically debt or technically equity, that yes this was a distressed financing situation.

[jhg23]

In LivingSocial's Operating loss for 2012 was a 1 time write down of goodwill (about $600 million), which is a non cash expense, so should not be included in calculation of operating expenses.