Luxaviation have raised 30 million eu last year and bought three companies Unijet, LEA and Masterjet. So it looks suspiciously like 10m per company.
The issued bonds carry a floating rate but appears to start at over six percent. Not cheap money!
So thats two million in interest a year just to buy the companies from their existing owners and before any value is added!!!! Plus of course there is all the overhead of Luxembourg to now carry.
That is two million in profit .....not turnover each year that they will be expecting at the very least to get back from those companies to service the cost of what has been borrowed to buy them!!!!!
Absolutely no way is this possible....none of those companies have ever made anything like that sort of net revenue.
So far as making any capital repayments...let alone by bond maturity dates..not a chance.
(Well I suppose they could always issue some more bonds to buy some more companies and use a bit of that to cover it........but all that is happening is an ever increasing debt mountain....)
So what on earth is going on?
Wake up guys!!!!
Last edited by Sheikh Zabik; 23rd Jan 2015 at 10:11.