LINE OF CREDIT QUESTION... INFORMATIVE, thanks…
Somehow, it is one of the modus operandi of these Fudsters, just to becloud PYR. If it is not Mellon Trusts, it is AMF, Financials Trips, weather in India, GLTA, bling faith, etc…
Post by Melida on Jan 15, 2024 12:25pm
Line of Credit Question
Someone asked how Pyro could secure a revolving line of credit when Mellon has first security against all moveable property. This could happen any number of ways depending on the circumstances.
Mellon's security is convertible, so, as part of the set up of the line, Mellon converts its security to equity, thereby allowing the line of credit to take a first security. Given the relationship between Mellon and Pyro, I don't think that's going to be a problem.
Another possible way is to have Pyro pay off Mellon by using the newly established line of credit itself. This gets Mellon out of the way and would allow the line of credit lender to take first security against the moveable property. This is done all the time. Pretty simple.
In any event, I don't see what all the interest by posters is all about. Upon big contracts being entered into funding them can be straightforward. The lawyers and accountants get together and sort it all out. This is just the conduct of business in the normal course ...
And yes, while big contracts are not guaranteed, just review NRs from the last 6 months or so. There are too many really good things going on to be unduly negative, as some shorty posters are.