John, what will they do? Guarrantee their loans as we have for Chrysler and Lokheed few years back? It is very rare, we let big companies fold before, like American Motors, Anaconda, Penn Central to name just a few. I do not know if Smasung will or not survive, but right now they are sinking in debt, and their problem is that a big chunk of this debt is linked to the dollar, while only a portion of their sales or cash flow is linked to the dollar. That will make their predicament even worse. Their assets are mostly Won denominated, so next time they come up before a "loan officer" (or equivalent), the debt to asset ratio will look twice as bad as it was few months back.
Zeev |
