Senior loan officer examines the recent performance of the company, who could not repay their loans as scheduled. Was the result of a cyclical downturn in sales, combined with a delay in the reduction of production. Inventory risk is minimal. Teaching objective: to practice in the field of financial analysis and understanding of the impact of the business cycle on strong companies commodities. In addition, to assess the situation from the point of view of the lender. Rewritten version of the previous case. "Hide
by Thomas R. Piper Source: Harvard Business School 8 pages. Publication Date: October 31, 1991. Prod. #: 292017-PDF-ENG