My guess is that even though the parks are open, SEAS is still bleeding money on the bottom line which is why they are stalling vendor payments. Their thinking may be that If they pay off the vendors now they could go illiquid again in a few months with nobody willing to finance them further under those circumstances.There have been a lot of cases where private equity firms have bought their way into successful companies and totally ruined them. In other cases they've helped the company they invested in. Not sure which way this is playing out with SEAS. The fast turnover of CEO's the last few years is not encouraging. But time will tell how things go.
What is puzzling to me is that seeing that SEAS got the loan to help them cover their costs through the end of the year then if the news is correct where they've not been paying their vendors why aren't they? If they have the money then they should start paying their bills and make your supporting vendors happy as repairing that relationship. Besides that it's probably costing SEAS money as I'd have to believe that most of the invoices have past due interest clauses in them so not paying them just amount to a higher invoice due to interest being added by the vendor for it being past due. Yeah, their costs are going back up due to the reopening of some parks at levels where they may be barely profitable but this shouldn't be a reason to continue to not pay your bills.
While this is true the ironic thing is that SEAS currently has a long term debt of almost $1.8 billion per the last quarterly report. I would have to think that with what was an improving economic situation they were experiencing that getting another loan above the one they just got should not be a problem. Now paying the debt back???My guess is that even though the parks are open, SEAS is still bleeding money on the bottom line which is why they are stalling vendor payments. Their thinking may be that If they pay off the vendors now they could go illiquid again in a few months with nobody willing to finance them further under those circumstances.
Its definitely unseemly from a business relationship and ethics point of view, but may be their only survival option. Unfortunately those vendors may not be willing to work with them in the future without better contract terms, which will end up costing SEAS more for new projects.
If SEAS doesn't pay their bills, why would anyone want to loan them money or invest in them? Seems like a loosing situation. If they are able to continue paying their bills, but do so in a manner that keeps some debt, at least that would show they do have some sort of payback or payoff ability.