Genuinely asking. I've never been through that before.
19 replies (most recent on top)
@h6 You're an a-hole.
You were warned, but you all know better. You made your bed, now lay down and use it.
Sleep people…. Sleep Forever….
Learn how to say: would you like fries with that?
With relationship to timing of filing Chapter 11 I believe four things will happen before we file:
1) We will continue layoffs though out the year reducing 15-25% of current staffing.
2) Stock value will drop below $1.00 and stay there for 90 days which will lead to #3
3) We will receive a warning on stock price to remain listed and we will complete a 4 to 1 reverse stock split getting us from $0.60 to $2.40/share
4) We will suspend our divided.
I believe you can almost map each of these to Q2, Q3 and Q4 2026 for 2-4 tasks with Chapter 11 filing in Q1 2027.
@e4 don't bet your career on it.
@dx no its possible. I think xrx can come out of it alive but will look different. I think where issue is the talent at the exec level is just not there. Even middle management is weak. So you have no transcendent talent or leaders. Most of them left between 2018 and 2024. But there is enough talent over at kyocera or Fuji to probably stear them back to credibility.
@dx Right. The end result of Chapter 11 is that viable assets and book of business are sold off to pay creditors at discount on the dollar debt recovery prices.
@dt good info - but the chances of successfully coming out of chapter 11 if that were to happen are essentially slim to none I assume?
@OP it will allow for xrx to do what they need to do in order to take care of debt and yes let go of a lot of that cost overhead. Right now xrx are not paying their bills. Everyone knows it. Credit rating is at or close to default status. So chapter 11 is probably going to help save what is left. Whatever that is worth. But the fact is the new ceo is not a transformation guy, he is a lawyer by trade who will manage this thing through the bankrupt situation. Then find a buyer or buyers. Some will go to PE and some could get parsed out to Fuji. But I think chapter 11 is next no doubt..
IF. That’s funny. IF. 😂🤣😅😂
Chapter 11 can be a good thing. But I doubt it.... they restructure and try to come back. if that fails then they file for chapter 7. which would be the end.....
What will happen?
The same stuff that I told you 2 years ago was gonna happen. Yet everyone told me I was wrong and I just didn’t get it. We will see apparently.
You were warned Bigtime.
Payback is a B I T C H.
@ad I’m male so get a pass 😬
@ab Spending controls will displease the Lexmark crowd who spend with wild abandon.
@aa Come to the UK? To enjoy the Muslim ra-e gangs? pass.
@a2 No, not true. CH11 petitioners need permission to spend money, not fire people. Companies go hog wild firing people in CH11 all the time, as the creditors demand it. The creditors can, and do, actually demand IRIFs in CH11. Every dollar slashed is a dollar they might actually get back someday.
Again, the real panic is the fact they didn't do a wholesale house cleaning before. They are waiting for the maximum benefit and minimal ($0) payout to the thousands of people currently handcuffed to the railing of the Titanic.
Also, they can use the CH11 to void collective bargaining agreements and sales incentive programs. That big sale you made? Guess what, the comp plan changed and they are giving you scraps, instead of what you were entitled to before the CH11 filing.
Worse still, the only contracts that seem to hold up are non-compete/non-solicit agreements.
Come to the UK, we are protected 😬
What it means is Lexmark and Xerox Sausages get zip and the big bangers get out the pan free
As long as it's Chapter 11, once they file, they cannot just start laying off. Everything has to be approved by the court. Payroll is treated as a top priority so there is probably less of a chance of paychecks not clearing than there is now. Of course the court could approve of a 50% RIF, but it would have to be seen as in the interest of restructuring - ie there is a viable company coming out the other end. Benefits can be cut as well, I believe.
As for our creditors and suppliers, well, they probably won't see much difference. They will be begging to be paid just like they are now.