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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by onerealityon Apr 18, 2012 11:51am
201 Views
Post# 19807705

RE: RE: RE: RE: SELL SELL SELL SELL SELL SELL SELL

RE: RE: RE: RE: SELL SELL SELL SELL SELL SELL SELL

"And I guess that is why they allowed YLO to drawn down the LOC for $239,000,000.00 in Feb."

 

It was not a matter of allowing it. It was a pre-existing agreement so YLO had every legal right to do it whether the bank liked it or not. That is why some have speculated that they drew it down now. They feel that YLO knew they were going to break that covenant in the near future and void the agreement, so they basically "Got it while the going was good". YLO fed that sentiment when they did not give any plausible explanation for doing it during the CC. You pay interest on a loan so you do not take it out until you need it, or you take it out now because you feel you are going to lose access to it. 

 

Time will tell what the real motives were. 

Bullboard Posts