160 kiosks for financial flexibility?
Thanks for the thoughts, guys, my outlook has broadened.
Since VEND has retained someone whose specialty is financial restructuring / bankruptcy restructuring, it occurs to me that financial flexibility is being emphasized.
Liquidity is key to survival, so I was thinking that it's mysterious that 160 kiosks are sitting undelivered. If they were delivered, that would generate both revenues and, perhaps to a lesser extent, cash flow.
In a bankruptcy and potentially (but less likely) in a workout environment, you can pick and choose the obligations that you will observe and perform. So, if you hang onto 160 valuable kiosks, maybe you can deploy them in a way that produces better results - to a national chain, to a new franchisee, to an existing franchisee who has agreed to pay more, to an existing franchisee whose funds are in escrow rather than having been already received and spent, etc.
So, there's a chance that those franchisees who parted with cash and didn't have it held in escrow are about to be disappointed and that those franchisees who bought in at a low price might be about to be disappointed and maybe some franchisees who signed up a long time ago and have been awaiting delivery......
So, maybe some kiosks will be delivered to generate necessary cash flow and some will be retained for future opportunities to the extent cash requirements permit.
The thing is - First, cash requirements seem pretty high right now, and second, there's only so much additional value to be wrung from those 160 kiosks. A probably unachievable best case would seem to be around $8 million. But maybe that's enough?
AI
