Teeqoz on 26 January 2016
spemanig said:
I thought it was a typo at first read. I don't see why they don't just pay it at this point. |
Even the most profitable companies take up loans, because sometimes you need short term cash to cover expenses, and it makes no sense to take that cash from your main reserves. This is the same reason the country I live in (Norway) can run a surplus on its federal budget, but still takes up loans to cover costs. It's not as simple as a "They have enough money to pay it, so why don't they."
Also corporate bonds don't work like that. It's not like you can pay it whenever you want. They have due dates and set interest payments for years.
