this post was submitted on 25 Jan 2025
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Technology
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I would be shocked if the company was actually breaking even.
I think he's sugar-coating it because their bonds are about to go up for sale. From the article:
If they were breaking even, the bonds wouldn't be getting sold at a loss. Keep in mind, the bond holders get paid before the stock holding investors, so if they're taking a loss, the equity investors are getting nothing (hence the 78 percent cut, basically their share is only worth the odds of a miraculous turnaround). That doesn't happen with a company unless it's losing money.
At absolute best it's breaking even before debt service.
Maybe he's still not just paying rent on some buildings and miraculously hasn't been kicked out yet