GREY:DRGDF - Post by User
Post by
truthbetoldon Nov 21, 2012 9:57am
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Post# 20626296
Hiccup - Bought deal
Hiccup - Bought deal From earlier Press Release
"As of September 30, 2012, the Company had spent $1.19 billion and had approximately $348 million in cash and short-term investments, sufficient to fully finance the remaining project expenditures ($270 to $310 million). The Company expects to secure a letter of credit facility this month that will allow its letters of credit to be uncollateralized. It is also continuing to advance a senior secured credit facility to provide working capital required during the initial ramp-up period."
My guess is that DGC could not get the uncollaterlized letters of credit from the banks due to the current court situation with the contractors. Banks always want to make sure that they will get their money back in a worst case scenario so with a lien being filed against DGC until a court settlement is achieved, the Banks may have been second in line.
I guess they'll take the commissions and fees from a bought deal instead. At either rate, hiccup solved and we move forward with the cash to production.
JMHO and GLTA