Originally Posted by
FriendlyPilot
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.
Frontier is a counter point on your predictive cash burn rate. They lost ~70M in each of the previous two quarters but predicting a profit in Q4. Perhaps Spirits moves have paid off more than we know yet? Time will tell.