MNK - Form 10Q (lots of information), page-4

@Anjo-Roch

"Not sure where the reference to $8bn Debt comes from ?"

Agreed, it certainly appears to be an inexact quote. I am left wondering if Jim Chanos looked at the overall liabilities (a total of $9,661 million) and included some of those usually considered operational.

In particular he may have included the reported deferred income taxes - some of which is interest bearing ($1,781 million) - in to his calculation. This amount would bring the total "debt" closer to $8 billion. It might be safer to assume it is something of this nature, as opposed to Jim Chanos simply being a moron which seems slightly improbable.

"If you want to include all payables then lets also put on the other assets and PPE . If you did this ( compare oranges with oranges), then the net asset position is per the 10Q is $5.114bn (page 4)"

Yes, $5,114bn is the total shareholders' equity, though in terms of ability to repay debt, I consider the idea of looking at "selling the silverware" to cover the debt is the option of last choice. In such a situation as anticipating selling everything, you would also consider removing the Goodwill component ($3446bn) of the assets in such a calculation?

For long term viability, it is the ability to use earnings to clear debt which I consider more important. MNK's Net Debt to EBIT was reduced from 16 in 2015 to 10 in 2016 by dint of selling some of their assets, but their earning capacity has taken a hit as a consequence. A ratio of 10 is high by any comparison.

Whether this affects MSB is the big question. If another partner comes along then it might not matter at all.

When I speak to MSB investor relations, they insist there are many discussions ongoing. By this time next year. MNK may not be a consideration at all, and, as he did with Teva, The Yankee can then tell us what he really thinks of them.

The above is just my opinion, happy to discuss with those whose ignore bin does not include me as a resident.