by enterprise value, they mean market capitalisation (maybe $90M at the time) plus market value of the debt owed (debt was $760M, but market value might only be $380M if discounted at 50c in the dollar) plus the cash they hold (maybe $70M.)
So $90M +$380M + $70M = $540M, which is less than debt owed to banks of $780M.
After wednesday's announcement, market value of debt at 50c in the dollar wouldn't be too far off the mark, as the company is still operating cash flow negative.
This could be a sad end - I thought they would recover more quickly after the FH 2016 result - but at the end of the day the company has little in the way of truly good management available to it (imo).
Lawyers are lawyers - they are not managers. When they start their working lives they do lawyering things like litigation - they don't learn management things.
Your surgeon may be a brilliant man or woman, but would you put him or her in charge of a big company ?
Who the hell is buying ??, page-122
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