Originally Posted by
Jdub2
I haven’t told anyone anything, I barely post. You’re right via sales and other one time tricks the net revenue was positive, but the operating loss was still $90M. It’s good they have more runway and would be even better if they haven’t drawn the DIP. But there won’t be $120M worth of furniture to burn for ever and they’ll need to improve the operating metrics in my untrained opinion
I'm taking it one month at a time, and October was positive in that they didn’t burn cash. They ended up +$20 million and may not have needed to draw from the DIP. Their transformation plan projects losses for the foreseeable future, but preventing cash burn during restructuring is critical. Avoiding a DIP draw (assuming they did) is a good sign. Ultimately, I believe the goal of all this is to uplift enterprise value and sell at a premium. Next up is $3 billion in debt reduction and labor concessions.