Simplified explanation: All large companies have large amounts of debt. The larger the company the more their debt, usually. Which is fine as long as their revenue streams are stable and they can pay off that debt in the terms agreed upon. Companies acquire debt because if they know they can pay it off and still make a profit, they can use that debt to expand/improve/R&D/buy stuff. That's why you will almost always find long term debts on balance sheets. Having debt is not a direct indication of whether a company is healthy or not. More important is how long that debt has been around, if it's growing along with useful assets, and if they are paying it off on schedule. Of course it's more complicated than that but I wanted to explain it in simple terms.

neoghaleon55

United States7435 Posts

June 28 2013 09:01 GMT

#204

On June 28 2013 17:50 SinCitta wrote:

Show nested quote +

Don't worry guys, Innovation only needs to win the WCS Season Finals 225,000 times and they are debt free.

If we consider 4 WCS finals per year.
That's about 6000 more years to go!

Musicus

Germany23576 Posts

June 28 2013 09:06 GMT

#205

I feel so sorry for all the players... as if the team is going to be allright

. I hope they all can somehow keep playing and find a stable team in the long run.

TheBB

Switzerland5133 Posts

June 28 2013 09:10 GMT

#206

On June 28 2013 17:10 mahrgell wrote:

Show nested quote +

Is it really that hard to read the OP?
There is NO german HQ. It simply doesnt exist! It is a postbox, nothing more.

Yeah, and we've known this for a long time. So what's the big deal now? There was a postbox on the top before and there's a postbox on the top now. They're just as screwed as they've always been.

edgeOut

United States945 Posts

June 28 2013 09:11 GMT

#207

That's not the problem, they bankrupted themselves long time ago. With this kind of company, a small esports team is not at urgency to disband. They still have plenty of business running even when they bankrupted themselves.

Looms

United States4624 Posts

June 28 2013 09:12 GMT

#208

On June 28 2013 17:59 lichter wrote:
Simplified explanation: All large companies have large amounts of debt. The larger the company the more their debt, usually. Which is fine as long as their revenue streams are stable and they can pay off that debt in the terms agreed upon. Companies acquire debt because if they know they can pay it off and still make a profit, they can use that debt to expand/improve/R&D/buy stuff. That's why you will almost always find long term debts on balance sheets. Having debt is not a direct indication of whether a company is healthy or not. More important is how long that debt has been around, if it's growing along with useful assets, and if they are paying it off on schedule. Of course it's more complicated than that but I wanted to explain it in simple terms.

indeed. i probably should have included more information in my first post about their debt, but what you mentioned about large companies such as STX is absolutely true. however, it seems that STX took on too much risk and that combined with the 2008 financial crisis resulted in the bankruptcy of STX Pan Ocean.

STX’s former and current officials said the main reason for current problems is that the group spent a great chunk of advance payments from clients in takeover deals without leaving some as operating capital.
“Mr. Kang should have put aside some money to continue to build ships during the downturn and adopted warnings raised by his aides and the market,” a current STX official said. “What stopped him was snowballed debts, after all.”

d_runk

124 Posts

June 28 2013 09:16 GMT

#209

If you look at the financial report of say, Manchester UTD, you'd see they have a gross debt of about 430 million GBP as of March 31. The clubs commercial revenue increased by 27.9%, while their debt only by 13.2% in the last nine months. They still owe a shitton of money, but are on the right track of paying up on time.
If STX has 9 million USD debt in the world of freight shipping that is like having two unpaid beers on your tab at your local watering hole. Also if we don't have any other info regarding their revenue streams, cash flow, prices of shares this data alone doesn't mean much.

edit: Ooops, got confused by the number of zeroes . 9 billion is quite significant.

SupaDupaFlyPro

Italy47 Posts

June 28 2013 09:29 GMT

#210

EG.Symbol

unijoux

United Kingdom23 Posts

June 28 2013 09:39 GMT

#211

poor San he;s been playing awesome recently.

Pandemona

Charlie Sheens House51493 Posts

June 28 2013 09:50 GMT

#212

On June 28 2013 17:29 GunPaladin wrote:
EG.Genius
EG.Supernova
EG.viOLet
EG.San
EG.Symbol

Alliance.Sleep
Alliance.B4
Alliance.TOP
Alliance.VINES
Alliance.Ganzi

you heard it here first.

Your not allowed to seperate TOP and Inca ;_;

Alliance Symbol and Violet. EG TOP and Inca <3