RE:RE:RE:JIM, PLEASE TELL US IF THIS IS FEASABLEShamhorish, the picture is not rosy, but it is not bleak either.
If the economy doesn't stumble, and if the demand for private jets is strong, BBD may be able to turn a modest profit in 2022. To achieve this, Martel must focus on increasing revenues and improving margins. He has stated that increasing aftermarket services is a high priority, and doing so will help both revenues and margins.
I don't know that there is a lot he can do in the near term to lower interest expense. However, if BBD can achieve profitabilty before 2023, as the debts come due, they should be able to refinance at lower rates (5-6% range). They may also be able to reduce the principal owing slightly($50-100M), each time they refinance. Over time, interest expense should come down to a more reasonable amount.
The two takeaways from this are, first, BBD is no longer totally in control of their future. They could do everything right and still fail, if the economy falters for an extended period. Second, even if BBD is successful in this turn around, it will not happen quickly and it will still be a bumpy ride for the next couple of years.
Jim
Shamhorish wrote: JIM, SO IN REALITY, the situation is much worse than i thought,
and the solution may be much more difficult to acieve.
i hope Eric Martel can some how reduce interest paid on long term debts without restruction (which Fitzgibbon, IQ, CDPQ are just wishing to happen for to complete the distruction of bbd)
i still for the best, mircal may happen, it has been bad to very bad for long time, may the stars change and shine again for bbd