GREY:CHALF - Post by User
Post by
TheCanadianDudeon Oct 16, 2022 8:28pm
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Post# 35028104
Chalice is OVERLEVERAGED, too much debt due in NOV 22
Chalice is OVERLEVERAGED, too much debt due in NOV 22 NO FINANCIALS in a full year & DEBT IS DUE IN FIVE WEEKS. Would it be restructuring or Takeover or worse?
- Chalice is obviously overleveraged, simply it has too much debt, impeding its ability to make principal and interest payments and to cover operating expenses.
- Being overleveraged typically leads to a downward financial spiral resulting in the need to borrow more.
- Chalice might need to restructure their debt or file for bankruptcy to resolve their overleveraged situation.
- The debt-to-equity ratio (see yahoo finance: 68) or the debt-to-total assets ratio. Meaning for every $1 Chalice owns, it owes $68 in DEBT
- Disadvantages of being overleveraged include constrained growth, loss of assets, limitations on further borrowing, and the inability to attract new investors.