Jan. 13 at 9:29 PM
$ALIT the big issue for ALIT is the liquidity trap caused by the Tax Receivable Agreement and Wipro Contract with obligations of
$160M and
$170M, respectively in 2016. This plus the dividend payments of
$90M total
$420M. Free cash flow in 2026 is
$235M and cash on books is
$205M, so ALIT can barely cover. I’m sure ALIT has a liquidity covenant which will not allow them to use all the cash so they will either need to sell an asset or cut the dividend. This tough decision is why the weak CFO left since I’m sure he didn’t want to be attached to a company that cuts a dividend (bad look) hopefully this is proved in but 2026 is a bulge year for obligations
