Originally Posted by
F-flyer
Fitch Ratings is the same rating agency that gave Lehman Brothers a strong, investment-grade (AA) credit rating in April 2008, less than 5 months before Lehman Brothers filed for chapter 11 bankruptcy with over $600 billion in assets suddenly worth close to zero (a 93% drop in share value)
Doesn't matter. Fitch were too optimistic: is that what you're saying? And anyway that was 18 years ago.
Point is the €380m of AIRBAL 14.5% bonds are trading at 36 today (vs issued at 100). If bonds are deeply distressed the equity is worthless. Not much chance of an IPO in this situation....
As others have pointed out, direct bailouts in the EU are hard now, so a debt restructuring at some point is likely (which would wipe out the equity).
That's doesn't necessarily preclude continuing operations.