Thanks for the update on NVRI! It sounds like NVRI should have - and maybe still should - renegotiate the rail contracts with the threat of placing the business in bankruptcy if customers didn't play ball?
I don't know enough to speak to that, to be honest. Not sure to what extent that threat would be seen as credible, given cross-border contracts, cash flow from the rest of the business, etc. other issue is these now are 2-3 year contracts; presumably, BK wouldn't arrive until halfway through the deal at the earliest.
It sounds from the most recent commentary like the major customers (particularly Deutsche Bahn, which seems to be the biggest one) haven't budged. I would *ree-ee-aa-lly* (Dr. Cox from Scrubs voice here) hope they played that card, since it would seem worth at least a shot, and if they didn't that seems another market against management. My sense is either they didn't play it and/or it wasn't a real enough threat to get DB and the others to renegotiate. I'd guess the latter is the bigger factor (either in DB not listening or in Enviri not bothering) but I'm really not expert on how that would play out here.
Thanks for the update on NVRI! It sounds like NVRI should have - and maybe still should - renegotiate the rail contracts with the threat of placing the business in bankruptcy if customers didn't play ball?
I don't know enough to speak to that, to be honest. Not sure to what extent that threat would be seen as credible, given cross-border contracts, cash flow from the rest of the business, etc. other issue is these now are 2-3 year contracts; presumably, BK wouldn't arrive until halfway through the deal at the earliest.
It sounds from the most recent commentary like the major customers (particularly Deutsche Bahn, which seems to be the biggest one) haven't budged. I would *ree-ee-aa-lly* (Dr. Cox from Scrubs voice here) hope they played that card, since it would seem worth at least a shot, and if they didn't that seems another market against management. My sense is either they didn't play it and/or it wasn't a real enough threat to get DB and the others to renegotiate. I'd guess the latter is the bigger factor (either in DB not listening or in Enviri not bothering) but I'm really not expert on how that would play out here.