Originally Posted by
tyler durden
GK declined $7.5B in low interest loans, presumably because of the restrictions to buybacks and the fact he didn't need it; SWA can continue operate at the current burn rate for 2 years. The cash burn will turn to profit long before furloughs make financial sense. I suspect GK knows this, which implies he's willing to sell the 'family' to maximize profitability. GK squandered a shot at having a 'Herb moment', and looking more like a courageous and caring leader than a callous bean-counter.
That’s not “presumably” why he turned down the loan. He stated that’s why he turned down the government money. Here’s the quote: “
The terms of the government loan are pretty onerous ... I think we would much rather avoid those. And I think what's near and dear to shareholders' hearts is it puts restrictions on dividends, which I object to, and share repurchases."
Stock charts over cohearts. High five?