starkawa

American Capital Strategies: Management Credibility in Question

I am getting comfortable even with their NAV to be revised down
further 20-30% and their ability to amend the credit facility should the
covenant is breached (I believe it's ~$1.3B with Wachovia). However,
there is one more concern I have and was raised in the conference
call:

Missing dividend payable- If I'm correct, a company incurs a liability
when the board declares a dividend; so even though the record date of
Q308 dividend is in October, I still expect to see a dividend payable
line in its balance sheet dated 9/30/08. In the conference call when
being asked, they replied that GAAP doesn't require it, but the
analyst can do their on calculation and trade the stock themsevles;
I'm a bit concerned/confused why they choose such response.

This, not the dividend cut, for me posts more concern to their credibility. I look forward to hearing different thoughts on this and
appreciate your time.