Yes revenue is slowly increasing but they are losing millions every quarter! Even if they start making a few million per quarter later this year they are still paying over $350 million per year on interest alone for the $4 billion. Refinancing the debt for a higher interest rate and delaying the maturity date is a temporary fix and very costly. BK is the only fix.
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BK = Burger King
BK - bankruptcy
whats a BK?
Did you hear that even though Sabre lost $96 million for the quarter executives allocated $60 million for their compensation!!! Thieves!!!! BK is the only way out of the $4 billion debt when a company is not earning 1 penny per year and losing $100m-$200m per quarter.
i'm no expert but imho a chapter 11 bankruptcy is very much in the cards for sabre. most likely scenario - swap debt for equity and spin off some businesses such as hospitality. i doubt they will merge with another gds - travelport is not doing so well either and a merger with amadeus will never pass muster with regulators.
if they can't pull that off then a chapter 7 bankruptcy (liquidation) would be the logical next step
Sabre’s Altman Z-score based on its YE’23 financials is -0.48 (any score below 1.8 is classified as distressed), somewhat lower than -0.43 as of Q3. Not a good sign. The near term BK risk is definitely there.