Originally Posted by
Section28- BE
Extract:
Interview here:
https://www.youtube.com/watch?v=7DyjC7_HygM
This is somewhat instructive in parts (in my view)- maybe, worth a watch if you missed it...??
The whole situation/process would seem somewhat/very 'fluid', for want of a term.
rgds all
S28- BE
2:40 "We'll carry very little, if any debt ..."
I don't think this bloke understands the basics of business accounting. I would be very surprised if they don't emerge with around $2 - $2.5 billion in debt and liabilities on their balance sheet coming out of this, maybe even a smidge more. Bain are not going to be able to negotiate away the entire $6.9 billion in debts and liabilities. Coming into administration the business had $2.3 billion in secured debt and $1.9 billion in aircraft leases. A little of the 2.3 might be negotiated away but something in the order of $2 billion will need to be refinanced. The aircraft leases will probably come down to around $250 million so there's $2.2-ish billion in aggregate for the emerged business. What should be markedly lower are the financing cost and leasing cost lines that will hit the P&L.
It may be just me but every time I hear that bloke talking about the business I feel far less certain that it has a reasonable future.