Could Booking Holdings potentially run out of cash in the second half of 2021?
If things get super bad, that’s a possibility. Compared to many other travel companies, Booking Holdings was in relatively good shape before the coronavirus pandemic turned the world into a lockdown pandemic, but it made a series of disclosures about dire scenarios that are chilling.
After all, at the end of 2019, before the outbreak of coronavirus was in the headlines, Booking Holdings had $6.3 billion in cash and short-term equivalents on hand, and today it potentially has access to a $2 billion revolving credit line.
But the company noted Wednesday in a financial filing about senior notes offerings, that in the past few days its room night reservations are down 85 percent compared with a year ago. When excluding the announced external financing and potential access to the $2 billion credit line, the company believes if business conditions worsen it…