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Non-Tech : Loewen Group

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To: Demetre Deliyanakis who wrote (143)5/19/1999 1:00:00 AM
From: Michael Bidder  Read Replies (1) of 277
 
Demetre I strive to find the obvious thing. Here are some thoughts on the Leverage of the Balance sheet.

To raise 300 million means they will need to sell assets.
This will increase the leverage of the balance sheet because they are selling properties at a discount and paying down debt that surpasses that total value of the company.

Furthermore they will lose the revenue of those assets. In effect the sale of assets leaves them in a worse state than before the sale.

Regards,
Michael Bidder
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