GREY:IMRSQ - Post by User
Post by
newdaydawningon May 27, 2015 1:07pm
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Post# 23770042
Imris fiasco shows why equity is better than debt,
Imris fiasco shows why equity is better than debt,especially for unprofitable high tech businesses. Imris mistake occured in Sept 2013 when it sold $25M of debt to Deerfield management. The loan carried an outrageous 8% interest rate. Imris just defaulted on the loan and is now in Chapter 11. Had Imris, whose stock price was $1.90 in September, issued $25M in equity, the company would not have gone bankrupt.