Will the Coronavirus Bankrupt Carnival Corp.?
The coronavirus pandemic has hit the cruise industry hard. And perhaps no one knows this better than Carnival Corp. (NYSE: CCL), which has been the victim of some high-profile coronavirus outbreaks on its ships. The cruise operator is adapting to the challenges in an attempt to fight off bankruptcy.
Management has tapped the debt market for $5.75 billion in junk bonds and diluted shareholders to the tune of 62.5 million new shares. While these capital raises will help Carnival survive in the short term, it won't be smooth sailing. The company faces significant cash burn whether or not it operates its cruises.
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Source Fool.com
