Hearing some buzz about Xerox filing for bankruptcy within the next week.
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@vw surely that’s illegal, does TUPE not exist in the USA?
@md right, but the weasles are saying that severance calculations will be based on rehire date (2026) and not enterprise date (1999)
@md yeah, with severance based on rehire date. AYFKM!?
Putty tells me "the magic 8 ball says" doesn't look promising.
@a4 *apiece
@e4 Its net, but I figured they are selling anything anyone would buy so what does that say about the quality of what is left.
@fw From HCL to Xerox? Just to be RIFed?
Rebadging from HCL going on right now. What he-- is going on?
You know who needs to stop it.
@dz That accounts receivable number, is it net of factoring costs, or raw? They use factoring (selling receivables) to get cash up front. Factoring firms rake ~10%-30% off the top, based on risk.
That number might be inflated by 10% to 30% of what they can expect, in a best case scenario.
I used AI to review the last few 10Ks for suspicious balance sheet reporting that may explain what has been happening. Remember, the GAAP audit only confirms that management has a reasonable story to validate the reported numbers. Eventually, they can't hide the ball in the shell game if or when the reinvention story falls apart.
Net Deferred Tax Assets (DTA) $81M Locked behind valuation allowance.
Goodwill ~$1,100B Subject to impairment if Lexmark synergies miss.
Intangible Assets (Net)~$412M Amortization drag and potential write-downs.
Finance Receivables (Net) $553M Opaque credit risk and portfolio quality because it was removed as a line item and lumped into 'Print' .
Accounts Receivable (Net) $1,196M Aging risk in a declining sector.
Inventory (incl. Lexmark step-up) $1,143BObsolescence and "phantom" accounting value.
Total Suspect Assets ~$4,485 ~12.3x the total shareholders' equity.
@bn Sure. We've all known that for a while. The Lexmark integration is going poorly with the field gutted and legacy Xerox customers cast adrift. That's going to hit revenue. Chapter 11 is coming. The question is whether sooner is better than later. Sooner means anything other than hardware, parts and supplies gets devastated. So, do they need to do that now, or wait until 2027 when the debt necessitates it?
Canning SB could easily have been to buy more time before filing.
@bc SB resignation/termination/separation is validation that reinvention is fairy dust and he has been full of sh-t for years. Its a fugazy!
@OP it's been the rumor for awhile. What's different this time that makes anyone think it is happening as soon as next week?
Crystal ball not looking good !
When is the fireside chat taking place?
@ac S&P is forecasting defaut in 2027. Default = CH 7 or 11
https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3524238
"Our recovery analysis assumes a hypothetical default in 2027 due to materially worse-than-expected print volume erosion and technological disruption that accelerate Xerox’s revenue declines and weaken its profitability."
I do know that more layoffs are coming on the 15th of this month and will be evaluated every month thereafter.
@ae they must be sat on the EC as it’s the first thing they would do is come here and post it.
As usual let me ask the normal questions that anyone with half a brain should put in their post;
Who are you hearing this from, what is your position in the company, how reliable is the source
Probably won't happen until 2027 or 2028 when they hit the debt walls, unless the books have been smoldering and smoking while SB was cooking.
hate to break it to you all but the math aint looking too good. Stock worth 1.26 a piece and we have a sh-t ton of employees that make way too much as well as a recent aquistion of Lexmark. So.... safe to say it is inevitable
They are all sausages
@OP I'm in management and I'll just say likely that's all I can say though.
Same here