RE:Why would DD invest in these notes?I did not say DD or Bottin or whatever entity he controls would invest in these notes DIRECTLY. I said he might be using the "friends and faamily plan" to invest in these notes.
Hey, the deal is not done yet. Company is paying today LIBOR plus 5% on about $49M owed to DeBeers from the buy-in agreement, and the company is paying LIBOR plus 5.5% to the banks on about $370M(?). While holding in reserve accounts over $100M and in violation of the covenants for these same said bankers.
Finance 101 again, reduce the reserve accounts and use the cash to pay down the principle on the loans. Give these bankers their money back, reduce the company interest expense going forward.............