Economy Blog » ExpressJet: Probably Toast

Economy Blog
Everything about the economy in a single blog

RSS | Visita nuestra web

Most of the time I have relatively little sympathy for troubled companies. But sometimes they just seem to run into so many body blows simultaneously that you’ve just got to wince a little. And ExpressJet is one of those cases.
Yes, ExpressJet is suffering from high oil prices, as all airlines are. But it is also suffering from something entirely unrelated: the seizing-up of the auction-rate security market, where it parked $65 million of much needed cash. That cash is now unavailable, and ExpressJet has taken an $8.7 million charge against that money - valuing the "cash-like" auction-rate securities at less than 87 cents on the dollar.
…
Fuente Original