True NAV (net asset value) "as is"
ttps://www.aircanada.com/content/dam/aircanada/portal/documents/PDF/en/quarterly-result/2020/2020_FSN_q1.pdf
As per December 2019, Long term liability was 17.3 billion and short term liabilities 6.4 billion. Current assets was 7.2 billion.
Net Property plant and equipment was 12.8 billion, pension asset 3 billion, intagible 1 billion and goodwill 3.2 billion.
Let's simplify
- let's Allocate 0 to the goodwill. The majority of the airlines are still alive because of borrowed draw/undrawn lines. Also, if nobody will be travelling soon because 14 days abroad quarantine or fear that travel insurance won't kick in in case of disease, goodwill won't mean anything.
- let's forget pension assets and other intangible
- Working capital as at today is likely below 0 (Current Assets -current liabilities).
What is left in valuable asset is 12.8 billion in net property plant and equipment (but likely below because the market value of the planes is definitively down)
Total debt will b 17.3 billion+ accumuluted Loss in H1 (Q1+Q2) financed by debt, therefore > 13 billion
NAV is 12.8 billion max in Valuable Assets minus 17.3 billion min in debt
NAV is far below 0