Originally Posted by
av8nallday
Acquiring NK would be the singled dumbest decision he could do unless it was a $1 acquisition. The amount of debt that they are carrying to the tune of a couple billion dollars would crush us. Then you could argue even for a $1 that would be stupid. They are burning over a quarter of a million dollars a quarter as well. With a $3 million holdback daily with the CC stuff yeah not a good situation to put ourselves in when we lost $70 million last quarter and have issues to figure out as well.
I’m not quite sure why guys are hellbent to this thing happening. Sitting here saying oh this would be great… Really? Explain to me how the seniority will go, or how in the world we would pay the debt even if we got it restructured. All while currently trying to get paid with our new proposal. While I feel for my buddies at NK I’m not one to push an acquisition by F9 it makes ZERO sense right now. We can’t hardly get out of our own way to make this place run let’s add some more bull to the mix maybe that’ll fix it. SMH
An acquisition could take many forms, likely increased investment from an outside source and complete renegotiation of the debt they owe for an equity stake in the new combined entity. Of course we wouldn’t just take their debt and let them sink us.. who would possibly do that? Think about it for a couple seconds before you react and type. Why do you think they turned down our most recent offer in Chapter 11? Because it made perfect sense for F9 and no sense to NK. We won’t do a deal that’s bad for us. The reason people keep talking about it is because it would be great to double the size of our pilot group and have some reasonable scale and share of the leisure market. They say two dead batteries still won’t start a car. That’s not true, you can take two batteries connect them in series and get ignition. That would be the goal with NK+F9, economy of scale. Of course we wouldn’t just assume their current operation it’s horrible, I we all hate mgmt but give them a shred of credit.
Edit: and we also wouldn’t be subject to their holdback as a merged entity.