...September 19, 2024 YS Garments' (d/b/a Next Level) liquidity position remains less than adequate, and its revolver and term loan become current in February and August 2025, respectively. The company repaid approximately $14 million of its senior secured term loan that was due Aug. 9, 2024. Its liquidity sources are limited to cash of $13 million and revolver availability of $29 million ($10 million drawn) as of June 30, 2024. We forecast modestly negative free operating cash flow (FOCF) overall in 2024 because of additional near-term liquidity needs to replenish inventory levels. We expect this will be funded by further revolver draws because Next Level has relied on its revolver to make required excess cash flow and debt repayments this year. Once the revolver is current it will be removed as a liquidity source in our analysis. We forecast a covenant breach in the next quarter. Next Level's original net leverage ratio covenant was waived for five quarters from June 30, 2023, through Sept....
