Sign in to follow this  
Parkz News

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

13 posts in this topic

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.

Click here to continue reading

  • Like 1

Share this post


Link to post
Share on other sites
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.

  • Like 1

Share this post


Link to post
Share on other sites
3 hours ago, coasterdude44 said:

So what this article is trying to say is that Dreamworld will stay in financial jeopardy long term after this ride is built. Years even?

 

More like if you're building this ride make sure you get paid upfront as you don't want to be a creditor in case they enter Voluntary Administration.

  • Like 2

Share this post


Link to post
Share on other sites

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 . 

Share this post


Link to post
Share on other sites
3 minutes ago, stellaclose said:

Hmmmmm I wonder if Movie World could buy it from them and replace Arkham Asylum...

Unless they were going shuttering Up the park that wouldn’t happen.

if they went into administration Someone would Buy them on the cheap and the coaster would remain.  

Share this post


Link to post
Share on other sites
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.

  • Like 2

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Parkz Crew

    Support Parkz... join the Crew for:

    • Ad-banner free viewing
    • Parkz Crew profile badge
    • Extended editing
    • See who's liked your posts
    • Purchase discounts

    Join Now from $20/yr

  • Recently Browsing

    No registered users viewing this page.