Does SPF's mgt KNOW its going BK?
At the early part of this year, mangement gave themselves million in cash bonuses. MILLIONS IN CASH BONUSES.
At the time the CASH bonuses were given, SPF just came off a year where it lost the most money in the company's history. Not only that, the current environment and current outlook is for even more challenging conditions.
Just to add a little hot sauce to the hot sauce, at the time the CASH bonuses were given, the company was in violation of its debt covenants knowing that it was going to have to beg for forgiveness in just a few short weeks.
Let's think about this for a second. Why would CASH bonuses be offered when this company owes its creditors billions and billions of dollars of CASH. Why wouldn't they simply have given themselves STOCK options if they had a positive perspective of the future......especially at a time when they will need CASH to pay their creditors.
If these guys know they are going BK, why havn't they informed their shareholders? Instead they cut the shareholders off from their CASH dividend to preserve cash and and bonus that CASH to themselves?
My friends, these are crazy times. Evil triumphs when the good do nothing.