Any rumors about what is going on with the tank sale? When it might happen, who the buyer will be, etc?
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Tanks will be and should be sold to the Buyer who lays the most dollars (or sheep stomachs) on the table. MDR needs the cash, and that's their primary focus, as it should be. Doubtful that there's any real concern about the cultural compatibility of Tanks and Buyer. If Buyer has any brains at all, first order of business would be to show the door to the carryover leadership from the old CBI. The fish rots from the head down, as the saying goes.
LSTK is really hard to do. That's why lots of guys are trying to get out. Only the desperate remain. Surprised to hear that Tank isn't going well, thought it would be an easy sell. We need the cash to finish CLNG.
1.4b in free cash, market cap 1.2b why don’t we buy our selves?? Transparency, wellbeing (for some). Land of the free for the cooked ones!
Fair point. You can blame PM and PA for ruining CBI. Big Onshore EPC is hard. But it takes a real f---ing mo--n to spend billon$ to buy this mess which took CBI down. Face it, Brown Tongue put his elbows on the table and took it. And he's doing it again trying to sell it. Beat the clock! Will we survive Brown Tongue's hubris?
Why buy it. Just wait and pick it up at a discount from the banks when they drop the hammer.
Yeah, wish it were like the old days when we had PA and PM in charge. Along with their SVPs, they really knew EPC and had the business humming. Oh wait...
Heard there was pushback on the profitability and cost allocation. I think DD will miss on Pipes, but Tanks will be good. After all, he's got the magic tongue.
Not going well. Lots of companies "just browsing" but sticker price is too high. Where did DD get the $$ tank n pipes would go for? DD doesn't know how to value a company, he overpaid for CBI by 2X. Did DD retrofit the $$ to debt to appease analysts? "Anchoring" a price tag worked when MDR bought CBI cause MDR dont know Onshore. But PM & co did know Onshore and took DD for a ride. Sad.
And DD is full of hubris, pretty boy ain't as good as his press clippings. Our buyers know more about Onshore then MDR. DD will get taken for another ride. Sadder. But sale needs to happen soon, we need the $$.
Lummus is not a EPC. They are a purchasing and construction company with a lot of overhead.
True, I think most of the debt is secured by Lummus, so declaring partial bankruptcy is likely off the table. But a merger partner could sell Lummus and get EPC and offshore super cheep. The only problem is DD is married to Lummus. He can't survive if they have to sell it. It's why they bought CBI and are flirting with bankruptcy now. So not a bad way to get paid and salvage a sliver of his reputation. CEO's who take stocks to "0" usually don't get second chances.
Takeover might make sense if the buyer knows EPC and can size up the focus projects. The losses won't be forever. Then there's value in next round of LNG trains.
Or buyer might also bite the bullet and declare bankruptcy for just US ops.
I can't think of anybody that would be willing to take on our problem projects and debt. The collapsing stock is saying Chapter 11 more than merger. We still probably have the better part of a year before the banks foreclose. Then I can see someone buying us out of bankruptcy. Can DD & Co. work his turnaround magic?
It’s not a sale it’s another merger on the way to avoid bankruptcy. “Double D” gets his golden parachute and a new assclown takes over.
Officially, it's Pipe Fab by June and Tank by September. DD said it's going well to the public, but hard to tell as nobody trusts him right now.