Post by
Oregonduck on Jul 11, 2024 5:41pm
Burn Rate Question?
In the latest 2024 financials, the Co. stated that their one year cash flow contractual commitments including accounts payables plus principal loans and lease payments came to $108 million or roughly $9 million per month. They reportedly have up to $40 million cash in bank. On normal basis, the burn rate is very manageable. The $200 million syndicate loans are up for renewal in September. However, the Co. is faced with accelerated repayment or "All Due" on their loans due to default. They must get a Forbearance Agreement from the banks to allow them to operate. Failing that, any questions about burn rate is moot. The Co. will face insolvency.
Comment by
givemeabreak1 on Jul 11, 2024 5:58pm
Oregon Duck you are missing one big component! Last quarter they had trade payable of over 40 million. Trade payable usually are paid on a 30 to 90 day maximum basis so that will eat up any cash they have.........While not usual even un-secured creditors such as trades can petition a company into chapter 11.....