Hearing Sabre is headed towards declaring Chapter 11 bankruptcy and being acquired. Acquisition will result in mass layoffs across all locations. The ELT team will sell you out to make their million dollars. Decide wisely.
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Why on absolute earth would Sabre declare bankruptcy today when the next debt maturities of any significance are in more than 3 years, revenues are growing as operating costs are declining, and the forward curve and fed dot plots are inverted?
Who wants to buy a company that has negative net revenue, flat earnings and $5 billion in debt?
This could be true, but I'm a little skeptical. A Chapter 11 bankruptcy reorganization would tightly regulate which of Sabre's debtors, suppliers and shareholders have priority to get paid and on what terms. That would complicate any pending acquisition deal. Also, if a Chapter 11 reorganization or acquisition were being contemplated, knowledge of that would be tightly controlled, especially after the ELT just announced to employees that they're looking for people to voluntarily leave and incentivizing that with enhanced severance packages. If employees got wind of a pending bankruptcy proceeding or change in ownership, that would cause a panic and the ELT would get many more volunteers for the severance packages than they were expecting, which would adversely impact any pending bankruptcy reorganization or acquisition deal.
we've heard this all before. i'm not saying it won't actually happen this time though