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Old 21st Apr 2020, 09:39
  #217 (permalink)  
radiosutch
 
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Originally Posted by touch&go
The problem is how Branson has constructed the company that has resulted in little cash and no assets for a rainy day, the article in today’s Telegraph gave some insight to this, the company has no assets, rented offices, rented aircraft and it also rents its name it also stated the landing slots are also borrowed against so can’t be used as an asset, the problem for the government is they also need to protect tax payers and in the event of a liquidation what money can be raised to repay the loan, total mess, easyJet raised 600 million but own a lot of aircraft so the loan was a easy transaction, BA own aircraft so can also raise money, seems virgin has maxed out the credit card before this crisis so no room for manoeuvre.
Well said. It's how many big corporates are organised these days. Lease,rent but never buy and borrow to the limit all in the name of providing shareholders with maximum return. It's a bean counters paradise.

It's all coming home to roost.

Last edited by radiosutch; 21st Apr 2020 at 09:52.
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