RE:RE:RE:RE:Expectations BA - Globals 7500Hey Pablo.
They had no choice they just kept borrowing. Basically, rob Peter to pay Paul (No pun intended). Or everything would have fallen apart. I hope EM smart enough to use whatever is the remaining equity of the new stand alone appraised value of BA as collateral to get some cheaper funds to pay off long term JB debt. When BA shows it can handle the existing remaining LTdebt of $4.5B (per EM), then maybe some conventional financing can kick in.
The remaining money left over from the $1.7B cash on hand, and whatever else they end up getting from BT's Lagacy investment, will tell the story on their health on closing. The closing is not too far off, so we'll know soon.
I think we'll be pleasantly surprised with the EBITDA. The margins will get better.
Best in the new year.
859
PabloLafortune wrote: 805,
If you dive into the #s and compare with some others, they need to improve the EBITDA and I believe EM is working hard on this. The LTD they can get down from BT proceeds and perhaps some other ways (I'm sure they are working on those as well).
It is incomprehensible though how much debt - both long term and other liabilities - they accumulated over the past 7-8 years. Every guardrail was set aside to fund the pet projects. Describing it as riverboat gambling may be understating it. The other family members - those who didn't participate much if at all in BRP and lost most of their equity (on paper) in BBD so far must be absolutely livid (as we are). Onwards and upwards as some like to say.
BBDB859 wrote: Hey Pablo.
The elephant in the room will be taken care of. They have to take care of it. They can't survive otherwise. They went after easy money in the JB market. Now they have to pay it back. They made a lot of mistakes just to survive. But they have to pull themselves out of this situation and do it as fast as they can.
The interest to service this JB debt is just killing them. You know that better others here.
I like EM too. But you know who the problem is. It's the "Idiot Heir".
Are they at the point of restructuring the shares? I don't think so. I don't think they will restructure them period. It's very riskey.
What I do think is that this company will grow with new products eventually. But right now, they have to focuss on the pure play. BA has to be profitable on it's own. Before they can get into other ventures.
The only thing to watch for right now is, to see what they'll do with the Billions coming from the closing.
Cheers
859
PabloLafortune wrote: We shouldn't be surprised. This division has always been pretty good and EM was the right man for the job. I've been around a few large companies, you learn to figure out who's good and who's not and you could tell that EM was in his element here. How he is performing thru this COVID crisis reinforces this view. I also believe the best is yet to come operationally.
Its the rest that remains to be seen - closing BT sale to Alstom, will the capital/shares be restructured and if so will it be viewed positively or negatively by the market, do they need to diversify from business jet or will pure play work, and of course the elephant in the room - the debt and interest thereon.