The company, which has around $5 billion in debt and $450 million in deferred lease repayments, has seen revenue slashed significantly due to the coronavirus pandemic.
“All that really matters here long term, this company is never going to make cash again,” Rich Greenfield, co-founder of LightShed Partners, said Friday on CNBC’s “Squawk Box.” “They will never generate cash with their current capital structure. It traded at 7 times EBITDA pre-pandemic. It’s now trading at 25 times EBITDA right now and it’s in a worse position today with the changed industry. This just defies all logic.”
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