RE:RE:RE:RE:Just wonderingYes you are correct, Banskota is out. I am sure he is delighted. Sadly, in cases like this, his legacy lives on in those that he hired who were like minded and in those of the BoD who hired him in the first place. It will take some time to turn this ship around....first there is the need to clean house - essentially the entire senior management team...Banskota didn't do this to the company all by himself. He had help in turning a company with a 16 billion dollar market cap into one worth just under 6 billion. The only thing that Banskota will miss will probably be the easy access to Algonquin Airlink's fleet of aircraft. In the meantime changing the culture will be no easy, (or inexpensive) task. The senior management and those on the BoD that shared his values will also need to be replaced and we can be sure that each and everyone of them has a similar "golden parachute" which will ultimately cost the shareholders many tens of millions of dollars of value.
So, can it turn around...probably...but not tomorrow. Is it likely to go down more? Some feel that once the tax loss season starts we may see the low to mid-single digits. This wouldn't surprise me (saddens me yes...surprise me - no). Is it likely to go on the auction block...maybe...but I doubt anyone will bite - who would want this debt combined with the existing management team? --there is just so much a new CEO can do if there is not the quality in the entire team and the BoD. This didn't happen overnight and it didn't happen just because the interest rates went up.
There is a need to clean house. The questions that remain are is there an appetitie to do so and are there financial resources to pay the piper so to speak. I doubt these folks will go quietly or cheaply. I fear we are in for a world of hurt (and potentially another divy cut) before we see any progress in turning this ship around. I still think it can be done, but we need to be patient...this will take a number of years before its back on track.
Sad.
GLTA
Rusty