Messaging. Told move was delayed because of punch list items unfinished. But now we find out that that the contractor stopped work because they haven't been paid $14mn.
Messaging. Told that MDR received unsolicited OFFERS (more than one?) valuing Lummus at $2.5bn. But if you read it, sounds like maybe no one offered to buy 100% Lummus or that MDR even want to sell all it all so they keep pull through. So maybe there's not really $2.5bn cash coming to solve the cash flow problem.
Messaging. Told that MDR "routinely hires external advisors to evaluate opportunities for the company" after WSJ reported that MDR engaged a turnaround consultant to help stem losses and improve cash flow. The stock price dropped 50% and trading in MDR stock was halted and then fell more. But now this turnaround expert is a C-level executive, Chief Transformation Officer, required by the new credit agreement. When did this change from being just "routine" and "external"? The lenders forced a change in the C-suite, echos of June 2017 at CBI? Meanwhile the new loan has terms that resemble debtor in possession loan in bankruptcy according to Bloomberg.
Bloomberg also said about the stock market drop "Investors were unnerved because they’d been led to expect that the company would announce it had successfully completed a sale of certain businesses before the end of the third quarter. Instead, McDermott disclosed it hired advisers to study strategic alternatives, including a sale of its Lummus Technology business." Led to expect. Messaging.
Executives get retention bonuses. Why? Because they might leave? How bad is it if the executives might all quit? DD gets $3.4mn. Why? Because of the humiliation of bringing in an outsider to fix the company he wrecked? The CFO resigned right after the 10Q was filed, walking away from his retention bonus. If he really quit, that's far worse than if he had been fired.
10-Q includes a going concern risk. Should you shrug it off? 10Q shows $5bn in negative working capital. That's $5bn that needs to be paid in the next year that MDR don't have the funds for. Refinance some, sell some assets, then what? MDR have negative operating margins. That means MDR are losing money on every unit sold. Before SGA, before writedowns. What do MDR sell, what costs are creating losses? Materials, equipment and your labor. What costs will be cut? Material and euipment? Your labor?
Look, MDR are trying to put lipstick on this sh– sandwich. But you need to sc-ape the lipstick off and take a hard look at how really sh–ty this situation is. Every few days, the situation is worse than what you thought based on the messaging. Why, the messaging? How bad is it really?
You are being managed. You need to think for yourself and take care of yourself.