{
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  "docSlug": "a458f84d7f69",
  "documentTitle": "Forescout Technologies (FSCT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-05-13 00:00:00",
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  "pageNumber": 10,
  "pageCount": 55,
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  "notes": "The slide uses red underlining to highlight the word 'restructuring' in the legal text, directly linking it to the 10-Q disclosure.",
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      "kind": "callout",
      "text": "From Forescout's 10-Q: \"In the first quarter of fiscal year 2020, the Company initiated a restructuring plan...\"",
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      "kind": "callout",
      "text": "Upon close scrutiny of Forescout's $2.5m surprise restructuring charge and plan initiated in Q1 2020, we see the potential that it violated a Forbearance Covenant of the merger document.",
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      "kind": "paragraph",
      "text": "ARTICLE V INTERIM OPERATIONS OF THE COMPANY 5.1 Affirmative Obligations... 5.2 Forbearance Covenants... the Company will not, and will not permit any of its Subsidiaries, to: (a) amend... (b) propose or adopt a plan of... restructuring...",
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      "text": "Upon close scrutiny of Forescout's $2.5m surprise restructuring charge and plan initiated in Q1 2020, we see the potential that it violated a Forbearance Covenant of the merger document. There is no mention that approval was obtained from Advent.",
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      "kind": "quote",
      "text": "In the first quarter of fiscal year 2020, the Company initiated a restructuring plan (the “Q1 2020 Restructuring Plan”) as part of the Company's effort to realign its cost structure in both its go-to-market and engineering organizations. The Q1 2020 Restructuring Plan included reduction in force of approximately 90 employees within the sales, marketing, and engineering functions and was largely completed by March 31, 2020 with no material future costs expected to be incurred. — Forescout 10-Q",
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      "text": "Evidence To Suggest Forescout Violated A Deal Covenant",
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