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| Re: Millennium debt deepens (161675) | |||
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Re: Millennium debt deepens |
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Posted by kcram3500 on Tue Aug 25 12:33:17 2009, in response to Re: Millennium debt deepens, posted by JAzumah on Tue Aug 25 08:21:34 2009. A contract doesn't solve their money problems - in fact, it makes it worse. Buses are not paid for until the delivery is completed... thus they would need to borrow incredible amounts of money for parts and labor to build the buses before they get a dime. Bus manufacturers "pay forward"... the money they get from order #1 is used to build order #2, and so on. With Millennium's current situation, what bank or supplier is going to give them credit until the check comes (and that assumes the buses are accepted by the customer)? That was their problem with the NJT order... it was worth $94 million, but they didn't have the money to actually build all 289 buses ordered. They sold the 40 NJT units they did assemble, and that allowed them to pay suppliers and build a small handful more to complete the small contracts they did get. |
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