Would you lend money to this company? Answers in the comments …

The company has had an annualized 60% staff turnover rate at the top management level.

The CEO fired the COO because they disagreed on certain subjects.

The suppliers were asked to pay a fine if they didn’t move the supply chain or manufacturing locally. Then some suppliers were exempt from the fine even if they didn’t. If the suppliers had to pay the fine they would charge the company a higher price.

The suppliers are paid in a currency which has lost some 11% against the currencies the major suppliers operate in.

The company is in huge debt. And it continues to make a loss every year adding to the debt it has. This year the company is likely to make a record loss. The company last made a profit in 2001 and is only projected to next make a profit in 2030 at the earliest.

The interest rate it pays on its debt is increasing.

And at this point of time the company is at the end of a great business cycle.

Would you lend money to this company?

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