Concordia Healthcare Corp. T.CXR.R

Everyone knows Managment is trying to get something done..

[fundtrader]

Matter of time , days or weeks is more like a real timeline for something to happen...

[Craigbad]

What could they possibly do? From what i have read, they don't have enough cashflow under optimistic circumstance to pay debt obligations in 2021. Another shoe drops and its toast. It doesnt make sense that a company would come in with a buyout offer for a company that doesnt generate enough cash to meet debt obligations AND pay a premium to the shareprice.  The bonds are telling a story

[KnowledgeSeekr8]

Why are so many people talking about debt obligations in 2021. You realize that is 5 years away and any number of a 1000 things can happen between now and then including renegotiating their debt terms and getting it refinanced. The company has 4 years to get their act in order and show the banks that they have strong cash flows and can handle whatever debt is left by then and refinance it?? What

[LaticeInExile]

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[CNInvesting]

Good point Lattice, their poor ratings will follow them in the years ahead if they continue on that path. Also, what makes anyone believe that they could refinance on betters terms in the future ? Look at the status of the economy now...it's weak and unproductive and bond yields are at a low. When the interest rates are pushed higher, and spreads widen, nobody will give a pass to the likes of

[select1011]

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[CNInvesting]

Yes the value of just about everything is at an all-time high, yet the underlying economics are lagging far behind. The reason the prices are so high is because of the constant involvement of central banks around the world. They're pumping this to new highs, and it's a dangerous game they're playing, because investors around the world will be left holding the bag when it goes south

[visionaryfool]

I believe the issue is that the free cash flow is getting awfully close to not being able to service their debt. I did some quick math after the earnings and it come out something like this: Revised Adjusted Forecast = $500M (low end) - $283 already achieved = $217 for remainder of year. Assuming NO change to the business for next year, the business should generate $432M in adjusted EBITDA

[LaticeInExile]

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[Marky1]

Good post Lattice...You are forgetting one thing...The company is slated to bring 60 new products from their pipeline into the market...That ought to help considerably...And yes I did sell my VRX and moved to CXR.....I'm calling IR today and have already talked to Adam in IR on Wed.  GLTA

[LaticeInExile]

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[Marky1]

Lattice..I shall ask him when I call at 9 am....I am long CXR while you are shorting it...We def. are on opposite sides of the fence on this stock...Another point that I'm going to bring up is WHERE is the CEO? Shouldn't he be proactively defending the company...I find Mr.Thompsons silence DEAFENING..I wish we had someone like Joe Papa or Bill Acman at the helm..TC Lattice

[LaticeInExile]

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[visionaryfool]

I believe the payment is du in October and they have till end of September to defer half of it to next February. They have ~$145ish million in cash now and have ~$230M of contingent consideration left. If they defer half of Cinven payment, then will need to make $140M this year and $90M to Cinven by February next year. Assuming they generate ~$8M from dividend savings for remaining of year, they

[LaticeInExile]

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[f_the_bankers]

concordia "international" should be the case study taught in business schools on how to avoid decieving investors by using gaap accounting instead of non-gaap accounting. 

[LaticeInExile]

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[Register123]

I agree with KnowledgeSeeker....Heck, if I'm not mistaken, VRX has approximately $30 Billion dollars in debt and are in much more imminent danger of defaulting on their loan payments / tripping debt covenants. Then new CEO Joe Papa simply announces he will sell off some as-yet-to-be-determined assets and try to re-negotiate some debt covenants, and presto, investors hop on the bandwagon again.

[Craigbad]

There is some truth in what you say, the drugs do have worth. The problem is they grossly overpaid for their portfolio and still have the debt which means any interested firm would have to overpay even more than MT did, which is almost an impossibilty. This is even before you take into account the fact they wrote off over half a BILLION in assets they just bought and still have the debt for. Its

[select1011]

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[select1011]

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[Register123]

One other point: Anyone who thinks creditors are chomping at the bit to send CXR into banrkuptcy either next year or on 2021 is nothing short of delusional......no bank / creditor wants to shut a company down and go through bankruptcy proceedings to try and get a portion of their loans back if they can possibly avoid it  - This is only done as a last resort if all other options have been

[Register123]

Correction: CXR could trip debt covenants before 2021 as covenants are terms other than the actual due date for payments of interest or principle (e.g. the obiigation to maintain certain financial ratios such as a maximum allowable debt-to-asset ratio)......In any event, my argument above still holds: Even if CXR were at risk of tripping a covenant, exprienced lenders realize it is in their own