Bf Goodrich Case Summary
B.F. Goodrich was a manufacturer of tires and related rubber products, chemicals, plastics, and a variety of industrial products, components and systems. It was also the fourth-largest US producer of tires, and the largest US producer of polyvinyl chloride resins and compounds. However, the 1982 deficit brought hard financial times for B.F. Goodrich. The company`s financial statements took a large blow, resulting in its credit rating being downgraded from BBB to BBB-. At the end of the 1982 fiscal year, B.F. Goodrich was going to announce a $33 million loss. By 1983, B.F. Goodrich required $50 million in financings to fund its activities. The company decided not to borrow from its financing banks in fear of compromising its future flexibility