GREY:LFDEF - Post by User
Comment by
WhatTthe69on Oct 07, 2020 10:19pm
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Post# 31684754
RE:RE:Financing
RE:RE:Financing It's far more common since 07/08 and especially more common in post COVID world for there to be a more lenient (aka kick the can down the road) approach once significant DIP finanicng is in place. In this environment it will almost be impossible for a creditor to recoup at a rate greater than what they could expect to in the future. The CCAA proceeding are usually estentially completed before the monitor steps in to reduce the length and costs of the precedings. All of this is especially true with Urthecast as they knew this could be a scenerio as the financing they are seeking was highly sought after by MULTIPLE parties.
They are essentially playing a game of chicken with the financiers and current creditors (who may be potential financiers). Look for Urthecast to finance potentially multiple projects with a combination of long term debt, convertable notes, and cash/financing for a reduced fee structure when using their services (ie "customer financed'). Microsoft, USAF, etc all came up at this time and it is not suprising. It's the end of the road for financing discussions and a classic stall tactic in order to finalize an agreement with Microsoft and USAF sending a signal to potential financiers that Urthecast can be trusted and has the ear of big tech and the military industrial.