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As I understand it the issue here is cash flow; the assets the companies have on their books are still valuable, but there is a cash flow issue right now. Every
by dayjah 7y ago
As I understand it the issue here is cash flow; the assets the companies have on their books are still valuable, but there is a cash flow issue right now. Every normal company would approach various lenders to take out a loan - I'm not quite sure why airlines are being treated any differently, or why the government or public needs to receive stock as a make weight.
If their businesses are solid, sound businesses, major lenders will not have an issue with offering good terms on whatever it is that they need to bridge the gap.
Other than a firm understanding of what that gap is, am I missing something obvious which makes bank loans not the go to solution here?