So first, this is typical corporate welfare that the modern world is riddled with and poisoned by.
Second, a $700 million loan isn’t that big for a company its size. It has $5 billion in annual revenue; so this is a loan for about 7 weeks worth of revenue. The reason its market cap is only $70 million is because it already had over a billion dollars of debt before this loan and it has been losing money for the past decade.
Without this sort of welfare, it likely would go out of business, which is what the republicans say should happen but fight to keep from happening. This is just more same shit different day, they get the profits and the public gets the loses
Their 2019 annual report says they employed approximately 29,000 people at year-end and had $4.8B in revenue in 2019. That’s $160k in revenue per employee, which sounds entirely plausible.
Definitely should go out of business (not to mention, execs going to jail for cheating the Feds).
From the WSJ article:
“This loan will enable a critical vendor to the Department of Defense to maintain significant employment while providing appropriate compensation to taxpayers,” Treasury Secretary Steven Mnuchin said.
“Provide appropriate compensation to taxpayers”?!? WTF does that even mean? Here are some details about what Mnuchin bought us taxpayers in this deal:
Cash & Short-Term Investment: 105.90M
Total Debt: $1.18B
Total Liabilities: $2.29B
Total Shareholder’s Equity: $-433.80 M
Book Value Per Share: $-11.68
I could go on with more of these bad numbers from their publicly available info. But I don’t have that kind of time. This is NOT a company I would invest in. Mnuchin is a dick.
