RE:RE:RE:RE:In fact the word "pledged"TheLandedEagles wrote: The value of those pledged reserves is limited to Cover the entire $15 MILLION...Similar to a mortgage on a property...
The other component is the formula to address further financing so not to impair the holders priority interest on that $15mm....
Oh dumphawk, Didn't you confirm it's a NEGATIVE PLEDGE? Let me guess. You have no idea what this term means. In simple terms, it means you don't promise ANYTHING. You promise NOT to do something unless you pass the covenant aka test. If you go offside LATER, that does NOT violate a negative pledge unless there is very specific allowance for that. There isn't. You should have given it up when you were ahead and said you were going away. Now it's embarrassing for you again.