BANKRUPTCY IS IN THE WORKS..
14 replies (most recent on top)
BDD (Bernard the Dizzy Dervish)
Realistic, which just happens to be a tad negative.
No doubt BDD will be in full spin control at the CC
Look at the numbers and make your own mind up
Lies, lies and more lies..
So the word out is that the earnings next week are very positive NOT bankruptcy! This site is very negative...
Can't come soon enough for me...
you guys really trust what's being valued on the books?
you should never, ever trust this company with accounting figures ever again.
There could be a wide disparity between what GAAP accounting says assets should be and what they are actually worth. However, if WFT keeps raising outside capital then it implies that the assets are worth far less than the carrying value and it could be using an inflated balance sheet to raise that capital.
Assets can be carried on the books several ways according to accounting and securities regulations. Those asset prices remain inflated (or understated depending on age and amount of charged depreciation) until it is time to pay the piper and sell them off. If WFT continues to lose money they will have to pay for operations one way or another. They could issue new equity, bonds, or sell assets. WFT appears to have chosen to issue new debt to the tune of about $1 billion in the past 6 months. When investors are no longer willing to lend WFT money then you may find the 'true' value of the assets based on the amount someone is willing to pay for them.
At the end of the day liabilities are $10bn, assets are worth from $4bn - $8bn, which means WFT is insolvent. How can the company show assets of $14.7bn when they are worth far less? WFT was fined $140mm for cooking the books. Is another fine on the way?
PepeLePew, Good comments. However, I would respectfully disagree in your thinking that the liquid value of the assets is close to$8bn. That likely assumes a sale to willing or available buyers. No one wants to buy right now, and I'd guess the assets are closer to $4 - $5bn in today's market.
Please be true
Please be true
5 -10 Days
What a way to Cheer up a hand on a Monday! Thanks a lot you ole negative nelly!🤑🙄😏😛😛🤗😶😠😠😤😏🤗😩😩😛😂🇧🇬🙄😗
A quick dip into Chapter 11 until activity pick up again may be a prudent move, especially if cash flow ) is down and the prospects of floating more cash, with Mr market or the banks is bleak. The $140M hit in fines for cooking the books hits cash flow (Q4) and scares potential lenders/investors.
Last quarter WFT reported assets of $14.7bn against liabilities of $10bn. The liquid value of the assets is probably in the region of $8bn. Plan equipment and inventory is only worth what you can sell it for, Real estate will hold up, goodwill is probably near worthless. So if WFT were to file Chapter 7 creditors would have to take a $2bn hit..... or cross their fingers and hope for WFT to get it act together so they can eventually recoup their money.
For employees it will be the same old same old day to day... except any stock holdings in WFT will be worthless