Risk of Chapter 11 or sale
Given the above:
The heavy debt load (several billions) and relatively small cash cushion raise risk if business continues to decline or cash flow weakens.
A sale or restructuring becomes more likely if they cannot reverse margin declines, stabilise revenue, and free up meaningful cash flow.
If nothing materially changes, the company may find itself pressured within 12-18 months, but this is highly dependent on actual cash flows, debt covenants, market conditions, interest rates, etc.
A sale (or strategic merger) may be a more likely outcome than full Chapter 11 if assets/brand can still attract buyers and if management acts proactively.
8 replies (most recent on top)
@qr You are more clueless the baby Steve.
Stop the cash burn rate please for the sake of God please be profitable how is this company so mis managed? A Five year old go do better
Stop the buybacks for Gods sake
Pay down the debt
Buy more dealers double down on your business Xerox is a copier dealer not an IBM or LEIDOS Xerox sells copiers
Go buy some dealers grow your business
GIS was a good decision
Buying ACS for 6 billion selling for 5 billion was a bad idea
You got out of IT services because the margin was low why are you back at IT services because?
See they sold patent portfolio. When you sell off IP that is the corp equivalent to an estate sale.
No buyout before CH 7/11. Who would want to pay off all that debt if they can buy the scraps out of bankruptcy for pennies on the dollar.
Pressured in 12-18 months? It's pressured now.
They are stalling payments to vendors, and doing Vendor Financing with outside firms (NFS) instead of XFS on new equipment so they can get cash now, rather than more cash later by financing in house.
We all listened to the call yesterday. He told wall street he was offshoring every job he could for 'synergy''.
IF XRX survives, it will only be a shadow brand like Radio Shack, owned by private equity out of bankruptcy with little to no staff and 100% of production offshored
I say done by July 2026. SB will leave before then "to spend more time with family" or "pursue other opportunities" and leave Louie holding the bag. "reinvention was on track when I left!"
don't whine
No chapter 11.
Everyone’s done reading this book. 📕
Library is closed.
See ya… wouldn’t wanna be ya.
Notching is going to “materially change” because there is no viable strategy. Don’t you think someone would know what it is by now?