Fly-by-Night

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TOPIC: Financial Statement Analysis


CHAPTER LINK: Chapter 5


Fly-By-Night knowledge base(prenominal) Group: Can This Company Be Saved?

Douglas C. Mather, Founder, Chairman, and point Executive of Fly-By-Night International Group (FBN), lived the fast-paced, risk-seeking life that he tried to inject into his Company. Flying the Companys Learjets, he logged 28 world speed records. Once he throttled a company skim off to the top of Mount Everest in 3 1/2 minutes.

These activities seemed perfectly appropriate at the time. Mather was a Navy hoagy pilot in Vietnam and then flew commercial airlines. In the middle 1970s, he started FBN as a pilot training school. With the self-denial buildup beginning in the early 1980s, Mather branched out into governing body contracting. He equipped the Companys Learjets with radar jammers and other sophisticated electronic devices to mimic enemy aircraft. He then contracted his rent-an-enemy eliminate to the Navy and Air Force for use in fighter-pilot training. The Pentagon desire the idea and FBNs revenues grew to $55 million in the fiscal division ending April 30, twelvemonth 14. Its common stock, issued to the public in social class 9 at $8.50 a share, reached a high of $16.50 in mid-Year 13.



Mather and FBN received glowing writeups in Business Week and Fortune.

In mid-Year 14, however, FBN began a rapid descent. Although still growing rapidly, its cash hightail it was inadequate to service its debt. According to Mather, he was just dumbfounded. at that place was never an inkling of a problem with cash.

In the go along of Year 14, the Board of Directors withdrew the Companys financial statements for the year ending April 30, Year 14, stating that there appeared to be material misstatements that needed investigation. In celestial latitude of Year 14, Mather was asked to step aside as manager and conductor of the Company pending completion of an investigation of certain transactions between Mather and the Company. On December 29, Year 14, NASDAQ...If you want to scramble a full essay, order it on our website: Ordercustompaper.com



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