- Buying shares of a company plagued by large debts experiencing revenue growth mishaps is always going to be an act of faith at least in part.
- However, if the revenue stabilizes, the $30M of cost-cutting alone can go a long way to keep the company solvable, given the company produces considerable cash flow.
- But the prime imperative is restructuring or refinancing its Senior Secured Notes to avoid interest rates rising to 10%+ next year.
- So this could be an interesting turnaround story, given that equity has almost evaporated, but there are quite a number of banana skins on the road.
April 9th, 2019 · No Comments