Thursday, December 15, 2011

Buying a controlling interest in Enterprise or Punch would net you a gigantic black hole of debt. Which essentially is the problem facing the clowns who set up the companies and their totally unsustainable mainline addictive borrowing habits. No matter how much profit they scam out of their massive estates, no matter how many of their lessees take substantial pay cuts to meet the financial
demands of their insatiable landlords, the pubcos cannot possibly square the broken circle of finance they made for themselves. Anyone taking over now is faced with taking on a certain failure. UNLESS the debt mountain can be hived off i.e. unless bondholders take a very severe haircut, there is no future for these antiquated business white elephants.

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