RE: RE: RE: RE: RE: RE: RE: RE: RE: Notes Yes, the bankers usually have first call on the assets, and they would never loan more than the NAV. The bankers have discretion as to the size of the credit line, so a borrower with high growth could likely borrow more than ~ 2 times current cash flow, on the assumption his cash flow would grow to service the debt. Each case is a little different. Despite high oil prices, favourable royalty regimes and new technology LEG (and many other companies) appear not to be able to grow based on their own cash flow, so rely on debt to finance growth. This is not sustainable in the long run, so banks simply stop increasing lending. This forces borrowers to seek out high priced unsecured loans (whether convertible or not) to stay on the treadmill until (they hope) somebody buys them out or perhaps their share price grows, and they can issue more shares.