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To: monkeyshine
‘refinancing’ with the risk accruing to the lenders.

Since central bankers around the world are determined to bail out the lenders forever, there is no risk.

If there were actual risks to the lenders, re-financing would not be possible and the cruise lines would go bankrupt.
9 posted on 03/24/2021 12:58:33 PM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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To: cgbg

LOL to your first point, probably not too far off.

On the second point I realized after I posted that there is risk to shareholders if the debt is defaulted, the lenders gain control of the company and shareholders are wiped out (presumably most of the management will still have jobs of course - little to no risk to them in fact the cash infusion helps them more than anyone). But the cruise lines should have assets e.g. cruise ships, dock rights, customer data etc that have some marketable value assuming they never do get back to sea in time to generate positive cash flow. These entities may crumble, but in time cruises will sail again. Just a question of who owns and operates the ships.


10 posted on 03/24/2021 1:08:25 PM PDT by monkeyshine (live and let live is dead)
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