For Tenet ( THC) investors, an excruciating stay in the waiting room is about to end. They will learn after the market closes Monday how their company is faring. And they will listen for new clues about whether the company -- ailing now for a year and a half -- can pull through in the end. After five long months, Tenet is finally set to release new financial statements that will expose the company's condition. "We believe that the deterioration in the financials is likely worse than expected," cautioned Raymond James analyst John Ransom, who has an underperform rating on Tenet's stock. "We reiterate our view that investors have yet to fully appreciate the magnitude of the company's woes." Even the "sparse information" provided by Tenet so far has Ransom worried. He is particularly troubled by terms of a new bank loan that triggered fears of a liquidity crisis -- and a huge selloff in the company's shares -- last week. He pointed to recent spikes in Tenet's bond prices as further reason for alarm. "Notably, the banks were unwilling to extend the line of credit beyond 2006," Ransom wrote on Wednesday. "In addition, the banks took collateral and guarantees from Tenet's subsidiaries and reduced their exposure to the company -- two clear signs of concern." Michael Scarangella, a high-yield bond analyst at Merrill Lynch, went a step further by identifying just how much Tenet had to pledge for its sharply reduced credit line. Scarangella learned, through discussions with management, that the subsidiaries providing collateral "represent that vast majority of
earnings before interest taxes and depreciation generated by the company." William Eddleman, a high-yield analyst at Argus, has been warning investors off Tenet bonds for months. He described Tenet as a company on "life support" even before the current liquidity scare.