Monday, October 19, 2009

Can Marriott Int'l Avoid Triggering Debt Covenant?

Marriott International (MAR-$28.04) learned the hard way that moving from a cash-based business like lodging to a financing-based business like timeshares wasn’t without risk – especially when consumers go bust and credit markets dry up. Going forward, the hotelier will no longer invest its own capital into new luxury-residential and new timeshare properties. Can the company avoid triggering the debt leverage covenant of its revolver credit line by selling off parts of its $1.5 billion in timeshare inventory? To read more about the near “junk status” of Marriott’s indebtedness, click on BNET TRAVEL industry….

Editor David J Phillips does not hold a financial interest in any stocks mentioned n this article. The 10Q Detective has a Full Disclosure Policy.

1 comment:

sell timeshare fast said...

And it won't change before long, at least regarding timeshares...