90c seems generous to me, as do the carrying values of RFG's intangible assets - especially GJ's. In 2013 Singapore Yellow Pages rejected a deal to buy GJ's for $35 mil. RFG inexplicably payed a whole lot more than that for it in 2014 ($163??!).
Problem is you don't have to carve much off the remaining value of the intangibles to show how scarce equity actually is in RFG - and realistically there is more carving to be done. Then there's the likely losses from Class Actions.
Their cash flow is terrible and is more than likely going to continue to worsen - makes their debt pretty much unserviceable.
Sure they can sell the pieces to reduce debt, but they will never get enough for those pieces to cover their liabilities. Their remaining reduced EBIT will still not be able to service the remaining debt, so selling off assets will only serve to make the negative equity situation become ever more apparent. In my opinion the ownership of this co will transfer to their banks and creditors in a few years. When that happens 90c will seem like a fantastic dream to whoever is caught holding.
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