TSX:TNT.UN - Post by User
Comment by
Frankie10on Nov 14, 2023 12:32pm
164 Views
Post# 35734668
RE:RE:Dist. Cut / Risk & Capital Management
RE:RE:Dist. Cut / Risk & Capital Management Either pay the distribution and let your unitholders decide if they want to reinvest the cash in the business, or pay down the debt! What is being done by pausing the distribution to buyback equity is essentially stripping unitholders of the choice to reinvest, while not addressing the actual issue (the debt).
Managment is sending a clear message. They don't see the debt as a problem and they believe the company is well capitalized. They would rather invest free cash flow in themselves rather than recapitalize the business.
It's a bold strategy Cotton... let's see if it works out for them.