DirtyP2002 said:
NJ5 said:
DirtyP2002 said:
Wow talking about surviving in such a context... so Sony is in the same situation like Ford, Chrysler and General Motors? Is there a possibility that sony has to be closed? I actually can not believe I am asking this question.
Don't know how much equity is left after this year.
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Last I checked, they had around $7 billion in cash. They have much more than that in other assets (office buildings, factories, intellectual property etc.), but the value of these assets might turn out to be smaller than they think if they sell them during the current economic conditions.
Anyway, $7 billion in cash doesn't last for very long in a company with their dimension if their small profit margins turn into small/medium loss margins. Finding creditors is not easy either, since they already have more than $10 billion in debt (checked in google finance). Who in their right mind will lend Sony a lot of money before they prove they can restructure their company for profitability?
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equity is not an asset 
But besides the value, which is true, the assets must be financed, so it will be hard to sell them. And the 7 billion is not cash, it is bound to the mentioned assets. And you are right with declining equity and not a positive view for the coming years, it will be very hard to find creditors or you have to pay a whole lot of interest
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I think we're on a different page. I was replying to the first paragraph of your post, not the second.
$7 billion is cash, it's on their balance sheet.
