GREY:CLLZF - Post by User
Comment by
rehsifylfon Apr 25, 2012 2:57pm
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Post# 19835305
Debt
Debt The debt itself would not be an issue for a buyer. It is simply part of the purchase price, along with the cost of the common equity.
A larger issue with the debt is the interest terms that surround it. The hight rate of interest and lack of ability to repay early is a larger issue than the debt itself, since it drives up the RoR that a buyer would need to make on the deal, and hence drives down the purchase price.