PROtrading wrote: What's the old saying again, you go bankrupt two ways, very slow at first then very fast... We are entering the "very fast" part now?
WAY over extended on debt with no lenders that will lend you money because of your miserable track record.
1. Covis acquisitions HALF written off in less than TWO YEAR on a 25 year amortization period.
So this is like buying a house on land you don't own. The house has terminites and is now worth half of what it was 18 months ago but the mortage on it hasn't gone down. You're under water BIG TIME. And you fear your attic is infested with bats or mice but you don't want to look.
2. AMCo acquisition. This is like trying to save yourself by buying a business that has been overcharging it's client. You pay $3B for it instead of $2B, the rest is for the "brand" (aka goodwill) which is horrid in the UK because everyone knows Amdipharm and Mercury were sequential "price jack and sell" making a couple of Indian brothers rich in the process. The gig is up on the business. The clients all know you have been overcharging and that includes the government. The government is looking into your book to see if you over charged them but there's tons of proof already. Governments have HUGE power. And to make matters worst, you realize you still have obligations to the sellers, it's technically NOT YOUR BUSINESS until you complete the earn-outs. You can't make the first earn-out so you defer it at 50%. The vendor is off the hook on the government back lash because it appears the business is under your name, so you'll get the roast and once you are cook, the vendor will come and reclaim what's left of the business minus the debt that was taken on by Concordia bagholders (shareholders and bondholders since note holders just stepped in front both those two groups for the planned liquidation).
This was the "rabbit trick out of the hat" that I feared in this bad clown show. Now, let's see HOW FUUCKING STUPID THE STUPID AUDIENCE (longs) are here! Never, ever underestimate the stupidity of the "average joe". No wonder the markets eat them up all day and spits them out without thinking twice.
I am ashamed to be a retail investor with the level of intelligence and depth displayed here by longs who appear to be legit retail investors!!!!
Craigbad wrote: Next stop is a gofundme page if the raise fails!
mingzhu wrote: 350 m secured loan is about the same size of book value of CXR. book value is close to zero now.
It cannot sell stocks, the reasons i mentioned earlier, now they sell debt to private firm. the interest must be higher than 9%, so 35m is added to that of 3.2 b. This is classical debt spiral.
CXR has value of course, but only for debtor not shareholders.
it is on the verge of collapse, vertually in emergency room now. Wow, people are cheering the loan.