Originally Posted by
MickG0105
Astounding, isn't it? And she's the current chair at IAG also.
You've got to love these snippets from last night:
So, between the Chair and the CEO there's a recognition that the business is over-leveraged, with a weak balance sheet. So far, so good.
What do they do? Let's add the best part of a billion in debt!
Scurrah is right, he inherited a business with a weak balance sheet - just shy of $6 billion in debts and liabilities and just over $600 million in net equity. So his cunning plan, obviously endorsed by his choice of CFO in Keith Neate, and signed off by the Chair and Board, is to issue over $A 900 million in bonds at 8 percent. It's a three-for
- trash the balance sheet completely by driving net equity underwater to the tune of a few hundred million,
- drive leveraging back through the roof (one thing that Borghetti had been managing was getting their leverage position down into the mid-4s), and
- just so the P&L doesn't feel left out we'll smash that with an extra $70-odd million per annum in finance costs.
It's mind boggling that anyone would pay these people to make financial decisions.
Scurrah knows little about aviation and numbers and was weak in making rapid changes required. He's a union captive. Mrs Scurrah was Chief of Staff of former Labor Premier Anna Bligh and now heads a consultancy to the Qld Govt on how to deal with millions of dollars per year in hiring consultants....join the dots...[oh and Qld will kick the can via QIC etc etc for $200M of payro;; tax, stamp duty and other relief plus a bit of cash with a small percentage.