thoughts on this?
15 replies (most recent on top)
@g6 At least 6 weeks, maybe longer. 78682.
@et Why are you sugarcoating it? It’s way worse than that, lol. Management went a little nutzo I say.
@aw Forecasting is no good because the SLT always exaggerates future performance. I can see they hired some ridiculous analyst to pump positive news into LinkedIn. What a bunch of clowns.
@a9 so you're an id--t?
@f4 Who? When?
@dt Not a bond payment, a vendor payment.
A major vendor has frozen the credit line.
@dk totally agree. The painfully slow action needed to try and save the company is shocking. It’s stunning and boggles the mind. My useless two pence worth of comment is this; Xerox generates 7 billion of revenue correct? They seem to be proud of this, but the bottom line is the company doesn’t turn a profit. When was the last time the company actually made a profit? My point is, wouldn’t common sense and logic say that if your not making money atleast try to SAVE money but cutting 40% of the workforce?? Cutting 100 people here and there every few months is not the answer. I honestly done get the thought process here. I know the JV and issuance of shares and this and that maybe helping the profit but surely this is all an and aid. Why is this all delayed, the lack of insight, openness and honest about the TRUE picture of Xerox is morally wrong. Plain wrong. I don’t know how certain mathematically it is Xerox will default - it’s a disgusting mixed picture being provided With no clarity provided which makes the reputation of this company disintegrate every minute of every day.
@dq Dear student please show your work Professor Market doesn’t believe you…
Could you please provide evidence that payments have been missed or any public statement from a vendor that they have written off money opened them by the company or debt holder that they have not received payment.
When vendors allow companies to delay payments but not write them off or make them public knowledge then Mr. Market doesn’t react.
And when debt payments are missed as you claim can you please share what payment exactly (which bond).. whom was the holder and etc same with vendor.
To my understanding there hasn’t been a missed bond (debt) payment and no vendor has written off any expected payments for services.
@dk Payments have been missed. Credit has been held. This is a now problem, not a tomorrow one.
@d7 I would say we reach hospice level when we miss our first payment to a large vendor, the JV organization or enter into a quarter with less on our books needed to pay our debts and Mr. Market (stock market) recognizes one these failings.
So far Mr Market seems to be confused about our situation or doesn’t feel we are in hospice. Hospice to me means we are in Chapter 11 and we have nurses and doctors around us how to keep the patient comfortable but still about to die.. Chapter 7.
I personally think we are in trouble but somehow we are kicking hard and keeping our head bobbing above water enough to take a few good breaths for the next week.. week after week.
I’m confused as many others are how this is happening and why some things like VRIF and other volunteers are taking longer than necessary but there could be a bigger plan to allow that happen in Chapter 11.
The future doesn’t look bright unless you’re seeing the bright light at the end of the tunnel (a train speeding up to run you over).
Love the analogy of being in hospice not the ICU. You are 100% correct in saying so.
It will be 2H 2027 at the earliest.. this time next year unless they find some extra one time revenue — like selling off AI.
@OP That is where we're headed, it's a question of timing.
S&P Global is forecasting default in 2027, but that is a few months old now and they may have assumed XRX would tap the breaks on spending a little; they have not.
https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3524238
It's a short read, and lays out their predicted waterfall and default. Two things to remember.
'Default' is CH7 or CH11, but most likely CH11, a restructuring.
When you read 'Unsecured' debt, or claim, that is you. The bonds and JV are secured against pledged collateral, Vendors, rent, the F1 sponsorship, and your paycheck are unsecured. Post CH11, your paycheck is viewed as an unsecured obligation in the eyes of the court, so the bond holders and the JV gets paid first.
If there was a possibility of avoiding this, they would have done the hard thing and fired half of the head count, or more and righted the ship. They didn't.
We're in hospice, not the ICU. This is about making the patient comfortable, not performing a life saving surgery. If it was, they would have done so long ago. SLT will have their off site meetings, show up at F1 races, and make platitudes to the equity holders until the well runs dry. Why would they not? It's pretty cushy, and when they do have to fire thousands of people, it will be post filing, and the BK Trustee is the bad guy, not them.
@OP They probably would function better under bankruptcy, they would be forced to do the cuts that they are avoiding.
The current management is just bleeding the company dry with raises just for senior management and nepotism has taken over just to give jobs to totally unqualified kids.
So if it is run by a independent unbiased bankruptcy team they could clean house properly and get rid of the good ole boys club going on currently and profits could go up.
How do you go bankrupt when you never made any money to begin with.??? 🤔