To: fastpathguru who wrote (274219 ) 8/17/2015 11:00:39 PM From: Mahmoud Mohammed Respond to of 275872 Mr Guru ... What a "Maroon" ... Is Advanced Micro Devices Bankruptcy Imminent? " ... The Debt Situation AMD is struggling under a massive debt load. AMD's interest payments, now totaling approximately $180 million a year, are more difficult to manage during a three-year time period when revenues have declined, cash flow is negative and equity investors are bailing out in droves. AMD enacted a plan in 2014 in an attempt to manage the crushing level of debt. It issued new notes that allowed it to funnel approximately half a billion dollars toward debt repayment from 2017 to 2019. The 6.75% interest rate attached to these new notes was also more favorable, compared to the previous interest rate of 8.13% for previous notes. While this may have given AMD a little breathing space, it's doubtful whether this move will ultimately save the company. The only positive note for AMD is that it now has until 2019 before it must repay the most substantial part of its outstanding debt. In reality, AMD has literally only bought itself a few years to put its financial house back in order. However, the deterioration of AMD's business is not slowing; it may, in fact, be speeding up. Constant delays in product development, and a slashed R&D budget are plaguing the company with hurdles to making any significant progress. Currently, AMD has a cushion of cash remaining to prevent instant bankruptcy, but whether it can postpone financial collapse beyond 2019 is highly questionable. Its slim financial cushion is continually dwindling as AMD attempts to remain competitive in too many markets with not enough resources. If the company cannot develop a strategy to restart a climb to profitability very soon, the massive debt repayments due in 2019 will likely bankrupt the company, unless some other circumstance accomplishes that at an even earlier date." investopedia.com Mahmoud