RE:RE:RE:Is it just done?TCS moved from a lender broker model to capitalizing the loan book on their balance sheet. The so called third party lenders who have been given a sweet deal (returns of approximately 22% over the years with a guaranteed 20% from Reykdal) have been paid out, although this is a bone of contention with the Schiffner family (rightfully or wrongfully; who is to say). Therefore the company had to replace the third party loans with cash from somewhere and the Notes were a good option (sorry soberinvestor) as they replace more expensive funding. However, now TCS has nowhere to hide. The loan book is on the b/s and cannot be explained away by suggesting to equity investors that TCS cannot comment because it is not their debt.
I agree the company is now, finally, after 13 years or so of operation, paying for its sins and will struggle (an understatement at best).
As for the senior Reykdal, he will take the company private (you heard it here first!). And why not, with a market capitalization of $25m it’s a bargain to keep the massive delinquency in the loan book away from prying eyes. Further, this will give Reykdal the opportunity to gain back complete control of the company, something he partially gave up by separating the positions of CEO and Chairman.