im sure sometime this week I will go to work and they will have a lock on the doors and tell us not to come in.
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The only way that happens is if they miraculously generate 5qtrs of consistent positive cash flow and I don’t think they have 2 quarters in a row in 10 years....if ever. Can only make money if you win jobs that actually make money and not for the sake of just generating revenue. That has and looks still to be the problem. Take out all the costs you want, but if the jobs dont make money then borrow or sell stuff...and when you can’t borrow or sell anymore....
With regard to the 2020 debt coming due, you don’t think the bankers will let them do what they have done before .... take on new debt with a maturity debt farther out to pay off the debt due 2020? Of course with interest rates rising it gets more painful.
I think there is a real possibility they don’t make it past next August when the credit line shrinks significantly. They will be cash flow positive in Q4 because they normally are, but will hold AP all quarter and factor everything under the sun. Q1 will probably be horrendous, and the asset sales will be the only way to keep from maxing out the credit line once it shrinks and they continue running negative cash flow. Otherwise, 2020 will sink them because they can’t pay the bond maturity or term loan that matures.....they are fighting a battle they simply can’t win.
“the debt that will kill us comes due in 2020. expect continued operations till then”
Most likely. I would say the only way to avoid that “doomsday deadline” is if the company can achieve positive cash flow by Q1 and then increase that positive cash flow to a higher level by Q3. Then and only then would the banks consider an extension. Heck, they are getting their interest payments so why not.
Cant be soon enough for me.
the debt that will kill us comes due in 2020. expect continued operations till then
Market cap 30b to 1b price flirting w penny stock territory unable to service debt any day now