Debt for Equity Swap ?

[Postee2]

I can forsee a debt for equity swap being proposed to save the company. Bad for shareholders, good for survival.
That is if, and only if things are as bad as we are to be believed.

[datasaint]

I can forsee a debt for equity swap being proposed to save the company. Bad for shareholders, good for survival.
That is if, and only if things are as bad as we are to be believed.

No why is anybody going to lend to an organisation losing half a billion pounds a year, when nothing has changed operationally, except for unworkable revisions being rolled out, and a couple superhubs opening. It'd be lunacy.

The only way this company will survive is to radically rework the USO so it can compete with the other parcel couriers out there.

Given that the government have put up road blocks on changing the USO. It seems as though the company are opting for the nuclear option of letting the entire house of cards fall, and reshape it from there up.

Whether VESA make a takeover at that point to look like the shining knights remains to be seen. They would certainly have a vested interest in splitting off GLS. Parcelforce may well be a casualty in all this also, they've dropped enough hints that it's not viable in its existing form either, the fact they gave Parcelforce's inbound international work away to Evri and stopped them from doing collections, and they tried to make them a separate entity back in 2019 suggests they don't really care about that aspect of the business.

[robking]

At the end of the last financial year group debt was £872million down from £895million in March 2021.
There were net assets of £5.3Billion so debt isn't a major problem.

[guardianangel]

At the end of the last financial year group debt was £872million down from £895million in March 2021.
There were net assets of £5.3Billion so debt isn't a major problem.

and they gave away £600 million ,not bad for a company in debt

[enskied]

And let's not forget all that money available in the "war chest".

[Postee2]

It's just my opinion.
Something clearly, is amiss. The banks or other stakeholders may be putting pressure on Royal Mail, especially with rising interest rates and fuel prices.
I'd be happy to be proved wrong.

[britwrit]

Surprisingly, maxing out the company credit card to save a few quid on our wage hike wasn't a smart move.

[norris9]

No idea how we are losing money when staff numbers must be down massively from what they actually should be.

For my office, based on my calculations they are probably saving £1million a year off their wage bill.

Mail is down 16% across the country, but mail prices are up.

Parcels - no idea.

[Nickvilla20]

Just seen a post on Twitter saying a union rep told someone that Royal Mail are going into administration. I know they are run badly but I don’t think they are been chased by creditors.