Stuart D Posted September 11, 2019 Author Share Posted September 11, 2019 MNK up 80% in 1 day on news of selling BioVectra business for $250m. Link to comment Share on other sites More sharing options...
walkie518 Posted September 11, 2019 Share Posted September 11, 2019 MNK up 80% in 1 day on news of selling BioVectra business for $250m. after that sale, mcap will be less than cash? then what happens with the rest of the business? super high short interest... might be worth taking a flier Link to comment Share on other sites More sharing options...
Stuart D Posted September 11, 2019 Author Share Posted September 11, 2019 after that sale, mcap will be less than cash? Yeah, I think so. Also in the 6-months ended 28-June-2019 they generated > $300m in FCF. It's a dying business, but it still seems to have a lot of cash coming in the front door. Link to comment Share on other sites More sharing options...
writser Posted September 11, 2019 Share Posted September 11, 2019 MNK up 80% in 1 day on news of selling BioVectra business for $250m. after that sale, mcap will be less than cash? How relevant is that if you ignore $5.5b in debt? Link to comment Share on other sites More sharing options...
walkie518 Posted September 11, 2019 Share Posted September 11, 2019 MNK up 80% in 1 day on news of selling BioVectra business for $250m. after that sale, mcap will be less than cash? How relevant is that if you ignore $5.5b in debt? the $250m isn't net proceeds? the debt is substantial, but supported by EBITDA ... bankrtupcy only happens if the gov't forces? it seems unamerican to force a company into bankruptcy rather than work out a deal that benefits all parties? Link to comment Share on other sites More sharing options...
DeepSouth Posted September 12, 2019 Share Posted September 12, 2019 MNK up 80% in 1 day on news of selling BioVectra business for $250m. after that sale, mcap will be less than cash? How relevant is that if you ignore $5.5b in debt? the $250m isn't net proceeds? the debt is substantial, but supported by EBITDA ... bankrtupcy only happens if the gov't forces? it seems unamerican to force a company into bankruptcy rather than work out a deal that benefits all parties? The EBITDA is ephemeral, the debt is not. Bankruptcy happens if they can't refi or roll their debt. MNK couldn't issue a first lien secured bond today at 12%. Link to comment Share on other sites More sharing options...
walkie518 Posted September 13, 2019 Share Posted September 13, 2019 MNK up 80% in 1 day on news of selling BioVectra business for $250m. after that sale, mcap will be less than cash? How relevant is that if you ignore $5.5b in debt? the $250m isn't net proceeds? the debt is substantial, but supported by EBITDA ... bankrtupcy only happens if the gov't forces? it seems unamerican to force a company into bankruptcy rather than work out a deal that benefits all parties? The EBITDA is ephemeral, the debt is not. Bankruptcy happens if they can't refi or roll their debt. MNK couldn't issue a first lien secured bond today at 12%. ok, but I think it's likely the attorneys make a push for resolution (good or bad) prior to restructuring? for instance, if they get a $200m fine rather than one for $600m, bond market should ease up? buying the stock is like buying an option here? might be better off buying the calls anyway? Link to comment Share on other sites More sharing options...
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