CNBC on Warburg

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Anonymous

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an analyst said on one of the stock shows on CNBC that Warburg is sucking cash out of B&L and hoarding cash while it looks like they will bankrupt B&L.

not good people.
 












Look at some of the older threads. This has been a long time in coming. It's your typical private equity bust out. This is also why nothing new has been bought or any real $ put into development. Ther ROI is just never going to be there. No one was ever going to buy this thing and now they have finally realized it. This is also why all the countless people that posted all this forward-looking stuff about how reorgs, firings, restructurings, etc. were all necessary were way off the mark. They might have well been posts over at Kodak for the pertinence here.

You can bet Freddie and his boys will be taken care of nonetheless. I wonder when the papers will be filed? We'll probably here about it in the news first.
 






Anonymous said:
Look at some of the older threads. This has been a long time in coming. It's your typical private equity bust out. This is also why nothing new has been bought or any real $ put into development. Ther ROI is just never going to be there. No one was ever going to buy this thing and now they have finally realized it. This is also why all the countless people that posted all this forward-looking stuff about how reorgs, firings, restructurings, etc. were all necessary were way off the mark. They might have well been posts over at Kodak for the pertinence here.

You can bet Freddie and his boys will be taken care of nonetheless. I wonder when the papers will be filed? We'll probably here about it in the news first.
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I agree with this post. The only posts that matter any more for this company is speculating on when there will be layoffs and when will the papers be filed?
 






The really bad aspect for us is that in a bankruptcy there is almost never a severance and they will immediately scuttle any type of pension structure. The people that will really feel it are the present retirees. They're going to be completely shafted and thrown under the bus. The rest of us that are young enough will still be able to find employment somewhere.
 






The analyst on CNBC would not say it if it was not true. Do you have a link to the video or do you know the name of the analyst? D&C should do a follow up on this story and interview the CEO.
 






If B+L is going bankrupt it must be the easiest job in the world for the CEO and its employees. The CEO just has to make it look like it can file an IPO so the banks don't get worried. Other than that the entire organization can be as incompetent as they want to be. Why succeed in your goals if the company is going to file.

It is an interesting case study. Going Bankrupt means you can not pay your bills to the banks. Yet B+L can dump loads of cash into a WP bank account that can not be accessed by the creditors? If these are the rules why would a bank or anyone else for that matter loan or give B+L credit? Why would the banks not charge a ridiculous interest rate to a company that may not pay back the loan?
 






Anonymous said:
If B+L is going bankrupt it must be the easiest job in the world for the CEO and its employees. The CEO just has to make it look like it can file an IPO so the banks don't get worried. Other than that the entire organization can be as incompetent as they want to be. Why succeed in your goals if the company is going to file.

It is an interesting case study. Going Bankrupt means you can not pay your bills to the banks. Yet B+L can dump loads of cash into a WP bank account that can not be accessed by the creditors? If these are the rules why would a bank or anyone else for that matter loan or give B+L credit? Why would the banks not charge a ridiculous interest rate to a company that may not pay back the loan?
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Welcome to the world of Private (Pirate) Equity.
 






I heard same thing. I think it was on squawk on the street with Cramer in the mornings. I record the shows and watch them at night. I can't remember which show but was definitely cnbc. Was like a week ago
 






Yes...this has been a long time in the making. What Private Equity (and not just Warbug) tend to do is load the company with a bunch of debt, take out the cash and stash it in their coffers, and then let the company file for bankruptcy. The debt will either be wiped clean or the company will be sold at a large discount to somebody foolish enough to buy it. Employees of the bankrupt company can then be laid off without severance or benefits due to the emergency distress the company goes through. Oh, and who foots the ultimate bill for the bankrupt company? It trickles down to the American consumer.

You have been warned on CP for over 2 years that this was coming through. If you haven't started looking for a new job by now, you're getting in late in the game. Freddie doesn't play around...don't think that he was brought over to B+L to turn the company around...he's a slash and burn kind of guy... a rockstar pharma exec that delivers money to the equity stakeholders. That's why they love him and pay him to the tune of $50 million. He doesn't care about you or anybody not in his elite circle. Don't think that your years of dedication and checking boxes will help you through this. It's the B+L apocalypse and the only way to survive is to get the hell out of the way.
 






How does a Private Equity firm take cash? Does B+L just write them a check for millions of dollars or do you have to disquise it in unusually high salaries for board members and fees for consulting by WP execs?
 






They own it.
check gets written.
Paid 3.6 billion plus a billion in debt.
Money comes into B&L, goes to Warburg.
Basic in/out. Nothing wrong with it. It's theirs to do with what they want.

If they want to reinvest in their investment by letting cash stay and go into R&D that's their call, if they want to bust it out. So be it. run it into the ground. Do it.
At this point, I'd do the same thing. the company is not worth salvaging. Sell the OCT and generics. Sell vision. Rx Pharma is a bust. IOLs is probably bust, don't think anyone would buy it...maybe dirt cheap.

Their toy, their rules.

Brent is the only one that will benefit from any of it. Everyone else all the way down the line, even perry, is meaningless to the brass at warburg. You don't work for B&L. You work for Warburg. Private equity. you're done in the end. you know how the story ends most of the time. no white knight is going to swoop in and save B&L. You're dreaming if you think that is what will happen. Building a career, no. Carpet can get pulled any time any where no matter where you work, but for a private equity firm, the writing is on the wall and a deal can be struck in a heartbeat. Very scary. I got out years ago as soon as warburg bought it. Everyone knew it would go down hill and it did. Place is a total joke. You're much better off elsewhere .

End of story.
 






Anonymous said:
They own it.
check gets written.
Paid 3.6 billion plus a billion in debt.
Money comes into B&L, goes to Warburg.
Basic in/out. Nothing wrong with it. It's theirs to do with what they want.

If they want to reinvest in their investment by letting cash stay and go into R&D that's their call, if they want to bust it out. So be it. run it into the ground. Do it.
At this point, I'd do the same thing. the company is not worth salvaging. Sell the OCT and generics. Sell vision. Rx Pharma is a bust. IOLs is probably bust, don't think anyone would buy it...maybe dirt cheap.

Their toy, their rules.

Brent is the only one that will benefit from any of it. Everyone else all the way down the line, even perry, is meaningless to the brass at warburg. You don't work for B&L. You work for Warburg. Private equity. you're done in the end. you know how the story ends most of the time. no white knight is going to swoop in and save B&L. You're dreaming if you think that is what will happen. Building a career, no. Carpet can get pulled any time any where no matter where you work, but for a private equity firm, the writing is on the wall and a deal can be struck in a heartbeat. Very scary. I got out years ago as soon as warburg bought it. Everyone knew it would go down hill and it did. Place is a total joke. You're much better off elsewhere .

End of story.
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Excellent analysis, Jer -- but by the way, weren't you asked to leave?
 












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