The DIP facility and the Implications 1) A bank does not give one single penny (let alone $35 million) to a company if the ship is sinking. Obviously CS believes or knows or has strong evidence that Tuscany needs some time to rightsize its balance sheet, sell some assets and increase the UT.
If Tuscany was a lost game, CS would not add more money in a bottomless hole. This is simple. CS would force TID to Chapter 7 and liquidate the company NOW.
2) I also believe that TID will refrain from withdrawing funds from DIP facility of $35 million and/or it will draw the least possible.
3) As shown at todays NR, the long term debt reduced from $205 million in November 2013 to $202 million as of today which is another good sign.