Ya this story came out awhile back...

monty wrote:

I agree that the big chunks are what are being sold off in the beginning. But at some point it may get down to the little businesses like WTC that work their way up the list to balance the books so to speak with the Chinese Govt.

But like I said, I really dont think a sale at this time vs what they paid for it would get them anything off the balance sheet. Short of a complete write off it just makes sense to keep companies making some money and paying down their own debt, while selling others that have more than book value and they can get an immediate write off and increase that % of debt value they are seeking..

It is also possible that there is some personal connection that is protecting WTC at the moment, like the old Providence one that did that deal. Of course we know what happened to that guy so probably best not to be too married to your passions when it comes to business decisions.

I agree that the big chunks are what are being sold off in the beginning. But at some point it may get down to the little businesses like WTC that work their way up the list to balance the books so to speak with the Chinese Govt.

But like I said, I really dont think a sale at this time vs what they paid for it would get them anything off the balance sheet. Short of a complete write off it just makes sense to keep companies making some money and paying down their own debt, while selling others that have more than book value and they can get an immediate write off and increase that % of debt value they are seeking..

It is also possible that there is some personal connection that is protecting WTC at the moment, like the old Providence one that did that deal. Of course we know what happened to that guy so probably best not to be too married to your passions when it comes to business decisions.

Edit: your explanation of debt write off and BV is incoherent. Not trying to be antagonistic. Can you clarify? //

Sorry I forget that others have not read all the previous articles about what is going on with Wanda and its China overlords. They are forcing them to divest of a lot of the overseas shopping spree that has been going on for years, the government is not comfortable with a lot of their biggest companies having so much leverage. Unlike here, they have to listen to their bosses(the Chinese govt) and thus they have been having a fire sale of assets. He is a passage from the story you quoted(thanks by the way, hadn't seen that one)

"Shortly after, Wanda sold a portfolio of hotels and tourism assets, including 13 theme parks, for $9 billion to Guangzhou R&F Properties (2777.HK) and Sunac China (1918.HK). Five flagship overseas developments - in London, Chicago, Los Angeles, Sydney and Australia’s Gold Coast - are also available for sale, according to one source."

My point was that since I (and most everyone else in the know) believe that Wanda waaaay overpaid for WTC, selling it now at a big loss would be pointless to what the govt is trying to get them to do. Yes sell assets, but dont give them away and lose money if you dont have to. But this article you posted is interesting as it may be another way out for them. They are bundling most of their sports acquisitions and thinking about taking them public with a Chinese bank it looks like. It would be a way to raise a lot of capital to pay off the debt that the govt is so interested in, while keeping the business viable for a later sale. Wanda knows they paid too much for WTC now too, heads have been rolling and they are pissed off. But of course everyone likes to save face, just like providence tried to do when they paid too much way back when.

It really has been the biggest sucker theory going on here and unfortunately for Wanda they are most likely the last in the line and get the biggest loser title. I think WTC makes money so they will plow through as well as they can until one day it hopefully catches up with what they paid for it. But in the meantime going public might be a good call, or not. What if the stock tanks and drives the value down even further, just means more years at the helm of a barley floating ship..

I know lifetime was one of the losers in the last sale, I think they would be good stewards for the sport, and are well allighned with it other than just bottom line.