RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Hitachi /Bombardier near i bil us contractI think by then they will be churning out a lot of Global and challenger jets and current 8% margin is supposed to go to 11%. With all biz jet products refreshed their R&d wont be as much so less cash burn. That should be enough to tackle the debt. Also dont forget they will have $550 million in Alstom shares if they didn't sell it after 3 months of holding it.
Jim99999 wrote: The problem is, I expect the proceeds from the sales will allow them to reduce LTD by $3B max, less if they have to use some of those funds to cover interest payments in the interim (this is very dependent on pace of economic recovery).
This could leave LTD at over $6B, with interest nearing $500M per year. If they are struggling to make interest payments, they may be forced to pay higher rates on refinancing. Almost $3B of that $4.35B is currently between 5.75-6.125%. I can see that going up if BBD is still struggling at that point.
Jim
Bullvsbear99 wrote: Do what they always do kick the can further by means of refinancing it or maybe use some of the proceeds from rail and Belfast sale to bring it down.
Jim99999 wrote: Nah, I like it here, thanks.
Serious question for you bicente. You have said several times that the family will not let it go BK. There is $4.35B in LTD due by Jan 2023. If the company experiences a cash crunch (which could happen if the economy is stalled due to covid-19), what steps do you see the family taking to avoid BK? Do you think they will put in some of their own money?
Jim
-bicente said>>keep hinting at BK and I will keep going ...seriously speaking , what are you doing on this board ? ... the bomber will not go belly up , deal with it, move on to another board where you own shares and bring Jim along too ...GLTA