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Old 11-28-2017, 10:12 PM   #21
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They are not going out of business, just changing owners to come out with less Debt.

The article didnt say how they became so debt ridden, maybe through leveraged acquisitions?

This (Bankruptcy) happens often and many companies come out just fine, though some dont. They are making money, just not enough to pay the interest. New management is also likely, hand picked by the owners to rebuild its value.

Last edited by prev1; 12-16-2017 at 09:21 AM..
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Old 12-04-2017, 06:51 AM   #22
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They are making money, just not enough to pay the interest.
That makes about as much sense as the famous joke "we lose money on every sale but we make it up in volume" If you can't pay the interest then you're not paying the principle which means the debt is increasing. Not enough money to cover your bills is called losing money, unless you're on wall street I suppose.
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Old 12-04-2017, 07:43 AM   #23
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there is some truth to that statement. If the manufacturer is giving bonus for selling x number of units, then you can lose some money upfront
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Old 12-04-2017, 08:37 AM   #24
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there is some truth to that statement. If the manufacturer is giving bonus for selling x number of units, then you can lose some money upfront
Doesn't work that way in the power sports world. No bonus money, invoice is real, and there's 3% advertising holdback. NOTHING like the car business.
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Old 12-16-2017, 09:18 AM   #25
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That makes about as much sense as the famous joke "we lose money on every sale but we make it up in volume" If you can't pay the interest then you're not paying the principle which means the debt is increasing. Not enough money to cover your bills is called losing money, unless you're on wall street I suppose.
Agree, they are losing money. I was just pointing out that post-bankruptcy they will probably have 1/3 of the debt and will return to profitability.

Who lost? The shareholders and some creditors. Creditors will own the company in exchange for forgoing repayment of money they lent the company.

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