Q Talk

[Patriot3]

Anyone see the stock closing today?  3.740, down 7.290.  Not good.  Glad I don't own any.

[They CallMe MRWILKES]

From Bloomberg Business News:

QVC Is in Talks With Creditors to Restructure Debt in Bankruptcy

"The company and its lenders have held confidential talks aimed at resolving a complex balance sheet and burdensome debt load, according to people familiar with the matter. Terms haven’t been set and no final decision has been made about filing for bankruptcy, the people said, asking not to be identified discussing private information."

[They CallMe MRWILKES]

With a prepackaged Chapter 11 QVC Group can work out the terms of the debt restructuring with creditors consenually and continue operations generally as normal.   It could be very fast.

It's typically common stock holders who get hit the hardest and often get wiped out.

[Puppy Lips]

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@They CallMe MRWILKES wrote:

With a prepackaged Chapter 11 QVC Group can work out the terms of the debt restructuring with creditors consenually and continue operations generally as normal.   It could be very fast.

It's typically common stock holders who get hit the hardest and often get wiped out.

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@They CallMe MRWILKES So in this scenario - what are the possibilities?  Could the overall debt be reduced or some forgiven?  Could there be refinancing and interest rates lowered?  Could terms with creditors be extended?  I suppose all are potential options.  Can creditors or whomever they owe money to just say, "NO" to any restructuring?

[They CallMe MRWILKES]

Yes, all of those are potential solutions.   The banks want some, if not most of their money back.

The Revolving Credit Agreement banks can agree to all sorts of relief including maturity extension and repayment terms.

Unfortunately for a retailer,  vendors may start becoming reluctant to deliver inventory or take new orders.

[jackthebear]

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@They CallMe MRWILKES wrote:

Yes, all of those are potential solutions.   The banks want some, if not most of their money back.

The Revolving Credit Agreement banks can agree to all sorts of relief including maturity extension and repayment terms.

Unfortunately for a retailer,  vendors may start becoming reluctant to deliver inventory or take new orders.

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judging by what has been shown on air that is already happening 

[shoekitty]

@They CallMe MRWILKES   This is what I thought might happen. I have known many companies, ( smaller) loose venders, or pull back.   Vendors are hesitant to sell to company with financial issues.  They are jittery about getting paid, or having company go into bankruptcy. I would see a reduction in inventory selection, and maybe reduction in easy pays , ya think? I certainly don't expect or wish this to happen to QVC. Perhaps an angel will come, or certainly new management. It is not just QVC, it is all all over. Commerce is changing so quickly. 

[febe1]

Non-exempt assets are removed. Can't get credit for years.

I think bankruptcy is the end, even those it's still breathing.

[febe1]

Does anyone remember Woodward and Lothrop?

What a wonderful, upscale store it was and they went bankrupt and then liquidation. I couldn't stop buying. I actually have beautiful items I've never used, but the prices were remarkable.

Beautiful clocks, cappuccino cups and saucers, shoes still not worn.  I keep it all in my gift closet.

It was my first liquidation at a beautiful store.  I could just imagination one at the Q. 

[skatting44]

@febe1 

 Oh yes, loved Woodies   which closed 1995

 Loved to  buy lunch at Morton's.

 Garfinckel’s was another  beautiful store.