In the long run it would be better, eliminate all debt now. Start fresh, WM merger would also be better for Discovery. I think it's inevitable, so why not now?
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Some of these people honestly believe T has a grove of money trees! Only a matter of time until Stankey can no longer meet payroll and pay the bills. Wolf is nearing the front door.
AT&T has plenty of free cash flow to pay debt and dividend. Will bankruptcy increase the dividend?
https://corporatefinanceinstitute.com/resources/knowledge/credit/altmans-z-score-model/
https://www.gurufocus.com/term/zscore/NYSE:T/Altman-Z-Score/ATT
ATT isn't a manufacturing company though.
Let's search for more companies that declared bankruptcy. Maybe that will convince the people that don't believe.
Whether AT&T is doing well or not, it is paying the dividend and paying the workers.
WoW! You actually believe T is doing well? That's funny, very funny. But I can understand, Enron employees and stockholders were the last to know.
When the company is doing well, it does not declare bankruptcy. It declares a dividend to its investors. Clueless people can talk about bankruptcy to make themselves feel better from their hopeless lives.
That's what GM said, shortly before declaring bankruptcy. We are an American icon with customers at the showroom doors, cash in hand. Then bo-m, belly up!
Sears is a good template for this. Still had plenty of revenue and used this time to transfer their real estate to a holding company. Once it was all sold to the holding company, they declared bankruptcy. The holding company is now leading a slow rebirth.
Anyone with the least amount on knowledge of corporate accounting, would now you don't take bankruptcy when people line up every month and give you money. Billions. Doesn't work that way. Ya gotta be broke, not in debt.
I agree with OP on this one.
OP is bankrupt of any brain cells.
I agree with OP. File bankruptcy, zero out all debt ($200B) and start fresh as a mobility/fiber company. I just don't see a downside.
cash flow is absolutely correct.who cares if your ex has to borrow for your alimony as long as you get the check.solvency is an old fashion notion
It would never get approved. The courts wouldn't approve it the people who own the debt wouldn't approve it. Itwould completely ki-l the company. Plus it has a positive cash flow and it can pay its bills, it can even pay its debt and the interest on its debt based on the schedule.
@ehn+1e4pAL6B is another ignoramus... Bankruptcy makes absolutely 0 sense and is not an option - given AT&T Balance Sheet, Income Statement, Cash Flow, etc. That statement is a fact and should not be construed as an endorsement of John Stankey/AT&T performance over the last decade - which sucks by any person's standards... In the same decade as a L3 manager, AT&T has helped me achieve significant wealth by most people's standards (definitely excluding Randall and John's)... and financial independence. Has been a fairly easy and stress-free ride. Think I'll keep the gravy train rolling a little longer. Very blessed indeed!
Maybe the OP should file for bankruptcy him/herself and let us all know about the wonderful "clean start"
Build Back Bust!
Oh well, they would probably do the same thing that they did to GM, appoint Ed Whitacre during the transition.
You have to understand that if T declares bankruptcy, the gravy train will be over for the BoD and for the Stink and no more 8 figure bonuses for his incompetence.
A bankruptcy court will appoint a receiver and that person will basically run the company and have to approve all payments, including all the bonuses to the M O R O N S. So the gravy train will be over for the Stink.
Thus it won't happen until he cannot extract another dime from T for being a D O L T.
Always good to see several Stankey cheerleaders on the forum. Go ahead and bury your heads in the sand. Keep chasing the unicorns!
Perfect time for a hedge fund Wall Street type company to make a play on AT&T. Stock is low, they can bid $30-$32 per stock, then sell the company in bits and pieces, do huge layoffs, eliminate all retiree benefits, and pay themselves dividends. The end is near.
$200B in debt, yes it can and may happen. Stankey has taken T to a whole new level!
Meh, that's what you said about GM just before they went belly up.
Even with all the problems at this company, they are never short of money.
Bankruptcy is not some magic reset as a result of poor decisions. T is still bringing in billions despite how low the stock price is.
What?
Ha. Maybe you should learn what bankruptcy means.
This is actually one of the best ideas I’ve seen on here in a long time!
MSFT wants to own some parts of 5G value chain. T market cap is 7% of MSFT with WM/HBO included. May need a good old ring-ring to Nadella.
Certainly within the realm of possibility.
Yes; incredibly ignorant comment! Good grief! Just a stupid statement.
Why don’t you just quit whatever pathetic job you have…if you work at all.
T is a cash generating behemoth and no judge would allow it, therefore, you'll not see it in your lifetime!
They currently have no cash flow problem. They can cut dividends before filing bankruptcy if need be.
Incredibly ignorant question and thought process