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Almost all bankruptcies in the next two years are going to blame COVID-19. "It wasn't us, it was the $external_factor" is a way for management to avoid blame.

Almost all bankruptcies in the next two years are going to blame COVID-19. "It wasn't us, it was the $external_factor" is a way for management to avoid blame. In some cases (restaurants especially) the health crisis has wrecked businesses that have been profitable for many years and the external factor is legitimately the main cause. In other instances, the company was already headed toward bankruptcy and the virus is just the straw that broke the camel's back.

Amygaz 7y ago
This is highly opinionated, since I don't know Greg Wyler at all, but I do remember his Terracom broadband satellite effort in Rwanda, which looked noble at first, but was more a pretext to pay himself a generous salary, than doing anything. So when he started OneWeb and then Ob3 (or vice-versa) I was skeptical. Now, reading about OW, and how it was mostly a middleman, I would say I am not surprised at all that he would pull this one and blame a virus. With chapter 11 he gets to protect his equity and compensation I expect him to rebound, with even better compensation.
- nujabe 7y ago
  I've know and seen Wyler's work in Rwanda first hand and seen the impact it has had on my villages and schools around the country, having lived there for a time in the mid 2000s. I have no knowledge of the financials of Terracom or the success of it's business model but I'm curious to know more about what exactly made you say that this was all a pretext to enrich himself?
chewz 7y ago
Most companies keep some skeletons in the closet and times like this are opportunity for CFOs to get rid of them hidden in quarterly report. This is one in 10 years chance to reprice failed aqusitions, investments went bad, mismanaged opportunities etc. And blame unpredictable, external circumstances. If we are to show loss on a quarterly report let it be large one-time figure. Heck we can even qualify for some bailout money.

Amygaz 7y ago

This is highly opinionated, since I don't know Greg Wyler at all, but I do remember his Terracom broadband satellite effort in Rwanda, which looked noble at first, but was more a pretext to pay himself a generous salary, than doing anything. So when he started OneWeb and then Ob3 (or vice-versa) I was skeptical. Now, reading about OW, and how it was mostly a middleman, I would say I am not surprised at all that he would pull this one and blame a virus. With chapter 11 he gets to protect his equity and compensation I expect him to rebound, with even better compensation.

nujabe 7y ago
I've know and seen Wyler's work in Rwanda first hand and seen the impact it has had on my villages and schools around the country, having lived there for a time in the mid 2000s. I have no knowledge of the financials of Terracom or the success of it's business model but I'm curious to know more about what exactly made you say that this was all a pretext to enrich himself?

chewz 7y ago

Most companies keep some skeletons in the closet and times like this are opportunity for CFOs to get rid of them hidden in quarterly report. This is one in 10 years chance to reprice failed aqusitions, investments went bad, mismanaged opportunities etc. And blame unpredictable, external circumstances. If we are to show loss on a quarterly report let it be large one-time figure. Heck we can even qualify for some bailout money.