Delusion & Ignorance......I haven't visited this board in some time, in a very long time actually, but with the recent news i decided to come for a visit. And to my surprise, after reading some comments in reaction to the recent development, it seems most folks here are totally delusional or ignorant,,....,,maybe even both. Because it seems clear to me, that most folks who are posting comments here either haven't completed their high school diploma, didn't take (or attend!) a basic economics 101 course or are totally oblivious to the mechanics of finance in general. Again, maybe ALL of the above.....for some.
Seriously folks, WTH did you expect would happen? A comany, which is HEAVILY indebted btw, to the tune of a mindblowing eye popping (pooping might be more appropriate here lol!) $60BBBB, YES that's B for a billion......and NO ...... you're NOT dreaming and this isn't the Twlight Zone. Really people, i suggest some of you smarten up......FAST.... and either get some refresher courses in basic economics or do some much needed DD in the company.
For those that STILL don't get it, i'll just say the following. Carrying THAT much debt, whic btw the company's mgmt should have been smarter than that NOT TO & and should have been more proactive in their risk management before waiting to last minute to act, is not only detrimental for ANY company, it's lethal/fatal when rates are rising FAST. That level of debt load was maybe manageable with 0 or near 0 interest rates, BUT it just does NOT fly when rates start to rise quickly to near double digits and margins start to get squeeeezed. This IS NOT a surprise that the company was in a......let's say "small" bind.......and was bascially FORCED to start liquidating some assets.....at bargain prices!!!.... for liquidity, re-balancing risk managment and to avoid certain potential issues which may lead to getting crushed to insolvency.
The reaction in the stock price here isn't a surprise. Because the market & most investors probably know TRansP sold those assets under somekind of duress, well below what they were worth, because the company was more or less "forced" to sell them. And not at a time or price of their OWN choosing. These are the results you get when you're in a diffilcult bind and under duress to survive and have a fiduciary duty to perform to s/h.
Anyways.........i hope this was/is a GOOD, hard lesson for folks, even though it could be a costly one for some here. And i hope i cleared up some "confusion" & misinformation which may have contributed to your bewilderment & the waters being somewhat muddled regarding this unfortunate tragedy....
GLTA