Can he fix it?
12 replies (most recent on top)
Bob the builder has more chance.
WFT is done. There is now way back, WFT does not have the luxury of a strategy just tactics until anything of value can be sold.
Girish Saligram is effectively the liquidator - no reasonable offer refused. If you look at the stock price trend of Exterran he is hardly a great catch. If the owners thought WFT could survive and grow they would have made Blanchard CEO.
He will need the rest of 2020 to figure out what he's gotten himself into and to get the real story of how things stand. I think this will be similar to MM coming in and putting some kind of transformation initiative in place that will take 12 - 18 months to show definitive improvement or just head back to bankruptcy court.
I wouldn't look for that 20% to come back until the industry picks up to the point where it's easier for people to find other opportunities.
I don't believe they would cut salaries again - I think that would simply result in destroying any remaining loyalty and drive people to finally moving elsewhere.
However, it might be that come 21/Q2 they decide to leave the existing -20% in place for a further period - anything from 3 months to slip into 21/H2 or even as long as 9 months to keep costs down for the whole of 2021.
The new CEO probably needs at least 6 months to demonstrate either his talent or lack of talent in reviving the company. He can make a start with Q4 but I think it will be 21/Q2 before he can really be measured.
The latest debt restructure is obviously a positive in that it buys a couple of years and eliminates the "potential debt default" statements which have been featuring in recent financial returns. So, he's got a clear run at the core problems ahead of him - control cost / increase business / reduce inventory / generate positive cash flow quarter on quarter.
To many chiefs and not enough Indians
The new CEO has been assigned to just one role: Impersonate Larry The Liquidator!
You never know, in 2021 if we still around, they will cut our salary again!
For a variety of reasons I think the -20% will remain until the start of Q2/21.
1) They have already taken the pain of introducing the cut
2) Their absolute top priority is to reduce cost so why on earth would they increase
3) The full 2020 results will emerge around end of Q1/21
He jumped off a damaged ship so he could help bail water out of the SS WFT.
No.
Wft doesnt need a ceo. It needs a reciever
Most likely not! But maybe he will give us our 20% back.