RE:RE:RE:RE:RE:NewsExactly what you said. The book value on there facility is 200m. The loan value is 90m. Yes your correct its actually under 50%. BMO doesnt have "faith" in nothing. They took the deal because they can repossess enough stuff to get there money back. What BMO doesn't realize yet, is that equipment and the 200m is literally worth .10c on the dollar IF that, but thats why most likely those restrictive covenants exist on the loan so they can for sure guarntee there money will be returned. 275k a month in interest just on the first 55m is no joke. You guys should be choked and yet your pumpin this. Your ex-ceo blasted his shares out in rage and converted his warrants to get cash out.. whats that telling you? think he had no common sense either? wow, some thick heads in here.
maritimedreamer wrote: wathcme..... you keep mentioning that the loan is secured against the entirety of 7acres...... you apparently do not understand commercial lending...... banks would never go to 100% loan to value..... not happening.... esp with the volatility of what facilities are actually worth.... i suspect at most they probably went to 70% max.... probably more like 50%....... but please do go on with doom and gloom...... and the interest rate that they would have to pay would be negligable.... i would say prime + anything form 0-3 % ..... they don't gouge on commercial properties.... but of course... you must know better and more......