Originally Posted by
redhot
without upcoming DIP, you have about 3.5-4.5 months left with cash on hand before reaching minimum liquidity levels . With the DIP it extends another month. That time frame factors in all reductions as well.
The October financials that came out yesterday show the increase in cash of $250M from the DIP draw already and they burned $77M of that in October. They will likely burn another $150M of that in Nov/Dec which we are in now and need another DIP draw either this month or next. It runs out in April or May if they draw the rest of the DIP.
The biggest problem is that they can't generate any cash by selling assets, because all asset sales go to DIP repayment first. Just like the $30M for selling gates went to pay back the DIP loans and Spirit doesn't retain it for operations.
This is a canary in the coal mine for what's about the happen if they don't get to cash flow positive.