CEO of Flagstar task was to find a solution to the problem of cash flows. Leveraged buyout in 1989 saddled the company with great interest and principal payments. To meet the financial obligations of the company, the CEO had to trim capital expenditures, which could otherwise have been used for the growth of business Flagstar and modernization of existing facilities. It has now become clear that cutting capital costs will put the company at a significant competitive advantage and a significant inflow of funds or reduction of the debt balance was necessary for Flagstar remain a viable company.
This Darden study. "Hide
by David Church, Kenneth Eades Source: Darden School of Business 23 pages. Publication date: April 17, 1998. Prod. #: UV0614-PDF-ENG
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