MD: A leveraged buyout (LBO) is highly unlikely fo

MD: A leveraged buyout (LBO) is highly unlikely for this company at this stage. The buyout price that would be demanded by the major stock holders would be very high. To raise that much debt (for leverage) would be challenging given no revenue or cash flow to service the humongous debt. The buyer would also have to put up a ton of cash (to comfort the banks) for a very risky proposition. If they wanted to flip the company quickly they would be in a very weak position as any delay would kill them. I don’t see this as a probable scenario at this point.