[ruh-oh] Restaurateur Tilman Fertitta Desperately Seeks Cash Infusion For His Hospitality Empire

Billionaire status usually applies to net-worth. A person may not necessarily have that much cash but book value of assets makes them a billionaire. During a financial crisis, those book value assets come crumbling down and market value takes over. It seems Tillman does not even have $250 million in liquid cash to help himself or his assets must be not worth much at this stage of crisis for him to easily raise funds. We can only speculate. But it is certain, if these reports are true, that Tillman with as many assets he has as collateral ($4.5 billion worth), he shouldn't have issues raising 5% of his total net worth. He seems very desperate for offering 15% interest. Something is amiss or simply he's running on ultra debt that no one is willing to offer him any more loans.

 

Moody downgrade Tilman credit two times in 16 days, March 25 and April 10.

Next 300 million loan would be 25% interest rate?

Covington + Gordon+ Tucker = 135 million includes this season

Salary dump trade?

 

Did he confirm he got a loan at 12%?

 

Usually
loan insurance 1%.
Payment protection insurance 1% for high risk.

 

Doesn't matter how taxable debt is if you can't pay it back. Doesn't matter how rich it makes you if you overplay your hand.

 

Time for some "creative financing"...

 

I lol at Tilman as much as the next man. Broke as. And the book title gives me no end of chuckles.


To be fair to him though, the book is about him shutting up and listening. Not thinking he knew it all, but learning lessons on his way to leveraging billions of $$

Too bad he's living on maxxed out credit cards now....

 

Doesn't sound like a man who's going to sell

lots of franchise restaurant name dropping

 

"I'm holding up pretty damn good."

"We gotta reopen in May."

 

I liked his appeal that workers need to get back to work for mental health reasons.... and his claim he is doing his people a favor by letting them file for unemployment first.

It is rare to find such a giving and compassionate person.

 

i.e. I'm not holding up fine because May ain't happening

 

"We have no financial restrictions for the trade deadline"

[Trades First Round Pick to duck luxury tax]

 

Agree that Fertitta won't go for that, for the reason you state. It'd be very easy for the other owners in that scenario to vote together, and remove a lot of Fertitta's authority, as well as insist on rigorous delineation between Rockets operating capital or cash flow and the finances for Fertitta's other business entities.

I was trying to think of a situation that would make sense for an investor like a Dell to give Fertitta a large sum of money, yet not acquire a controlling interest in the team, or even need to be consulted by Fertitta before making any business decisions. I've written before here that I don't understand why a savvy investor like Dell would give Fertitta a billion dollars, just to be treated like a mushroom, when the team likely doesn't make a profit after loans are paid, and the team isn't likely to be sold in the near future.

 

I have no idea what Tillmans financials are but I do know that he is particularly hit hard during this because of his businesses.

I just don't understand why people have to make stuff up to pile on.

 

Billionaires LOVE to act like they're the voice of the working class.

 

#bewell

Spoiler

 

This is what the Landry’s employees said, please confirm if you know.

Tilman is the most greedy and most selfish person in the world,

Tilman decided not to pay employee earned PTO after employees were furloughed.

Tilman decided not to pay employees medical insurance after employees were furloughed.

Tilman decided not to pay any bonus to managers for January and February.

I am not sure if it’s true. It may be all faults.

 

Acting and speaking is cheaper than doing. In fact, it lets you get away with not doing.

You might even sucker them into not doing while they're LISTENING.

 

Agreed and you can tell that the billionaires and politicians are shocked for the first time people are telling them to shove it... from Trump with the “cure worse than the disease” to Dan Patrick with the “Baby boomers are willing to die” to TF and Jeff Bezos being put in their place... there is a social change we are in the middle of.

 

The only positive note from this entire pandemic.

If goes on for a couple more months then Tilman will really be forced to sell.