GREY:AIIFF - Post by User
Post by
woolwichon Dec 28, 2014 11:23am
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Post# 23267365
Hard to understand....
Hard to understand....Buried amongst ARF's SEDAR filings is a 24 December 2014 item outling the "Fourth Amending Agreement" with CIBC and BNS. Seemingly there remains some, as yet, unused credit amount (dating from the $60 million credit facility established in December 2012) which Armtec appears to want to use for issuing Letters of Credit over a future time horizon. Typically such Letters of Credit would be issued to cover performance bonds on construction contracts but there may be some other purpose.
It's hard to understand how ARF would have much unused facility so any L of Cs issued would likely be very small, thereby indicating that the contracts covered by same would also be small. Even harder to understand is why the request for this fourth amendment did not raise some serious red flags for the banks. Presumably the costs associated with creating and executing this agreement were considerable and these may well be piled on top of an already tall mountain of debt. One interesting feature of this amendment is that Brookfield is not shown as having any involvement.