Darryl Cutell Speaks About IHRA Issues (8 Viewers)

[Jim]

Darryl Cutell has confirmed that the IHRA's financial issues were the result of Elon Musk not paying money owed to Darana Hybrid.https://www.dragzine.com/news/darry...a-financial-issues-elon-musk-payment-dispute/

Darryl Cuttell Addresses IHRA Financial Issues, Elon Musk Payment Dispute​

The story makes me wonder about the business sense of someone who makes many commitments and promises based on one business using money from another business that had not yet been received.

 

[Paul]

Not much business sense to over leverage himself that much. There's 3 sides to every story and we have only heard the one that owes racers and vendors money.

 

[65 Goatboy]

All large business's are going to have accounts receivables and they are considered an asset if current. But if they are 60, 90 or more days old you couldn't even borrow against them. I'm guessing Musk owed Darana a lot for Darryl to make the statement that the IHRA was fully funded for 10 years. We already know he wasn't listening to those around him about basic business accounting.

 

[Jim]

All large business's are going to have accounts receivables and they are considered an asset if current.

Yes, current receivables are assets. But well-run businesses limit how much they leverage themselves relative to those receivables and projections.

I also have concerns about Company A overleveraging itself based on receivables due to Company B.