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No-go roller coaster: how Dreamworld banked on a hand-to-mouth recovery strategy they could never afford


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No-go roller coaster: how Dreamworld banked on a hand-to-mouth recovery strategy they could never afford

As roller coaster parts arrive via shipping container from Germany, Dreamworld executives reveal a precarious financial position that's more than just concerning in the face of a global pandemic: the numbers simply don't stack up on their costly recovery gamble.

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2 hours ago, Jpw25111 said:

Well this article is going to age well.

Which parts? Senior management quoted saying they require funding to build it? That their plan was to fund its construction with cash flow from a business that was already running at a loss? Their lack of a debt facility in Australia to draw from? 

At no point does the article suggest it won't be built; it's probable it will. If you can point to any certainty as to how or when they'll achieve that then please do.

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They are in the media .. perhaps to put more pressure on a state government loan ?

Is zero debt facilities correct? With cash reserves dwindling by 10 m per month ardent will be insolvent soon enough . One would expect a capital raising soon or administration . 

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12 hours ago, dbo121 said:

They are in the media .. perhaps to put more pressure on a state government loan ?

Is zero debt facilities correct? With cash reserves dwindling by 10 m per month ardent will be insolvent soon enough . One would expect a capital raising soon or administration . 

No Australian debt facilities is correct.

May 2016 revenue was only $6 million, so if the park is genuinely losing $5-10 million a month with significantly reduced costs during shutdown and the majority of wages covered by JobKeeper (there's say $1-2 million in costs) then insolvency is what they deserve, pandemic or not.

The three options to repair their balance sheet mooted by AFR and echoed by other investment reports suggests they can do three things: sale-and-leaseback (a la VRTP), sell a stake in Main Event or raise equity. 

We know with certainty that the first two have been on the cards and/or actively pursued by Ardent in recent times.

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there Is about 80m cash on hand post refi as at April . They have the cash for a little while but would be running a finer line if do discretionary construction spending whilst not operating . So prudent to hold off . 

Edited by dbo121
Facts corrected
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