I remember in 2012 when they woke up to the fact that burning through cash and just issuing more debt wasn’t going to work much longer. Unfortunately, it was too late at that point as they didnt act fast enough, didn’t do enough, and then the crash in oil prices essentially sealed the deal. It’s a vicious cycle, less revenue and too much debt + no free cash flow means banks and investors eventually get worried. When you’re at their mercy, borrowing costs go up even more, credit lines dry up, and then winning new business and fulfilling current obligations becomes even harder. Eventually there will simply be no choice as revolving credit facilities mature and/or bond payments become due and can’t be refinanced.
Couldn’t agree more. OP by @Wsr99jK-njj