RE:RE:RE:RE:RE:Can't wait for those financials!Grumpy says,
Obviously you don't understand how a BUSINESS LOAN works if you keep bringing up the question of the eventual sale of Point Rousse and comparing that to the sale of a house or cottage.
Let's say Point Rousse sells for $15M. Do you think the lender will be unhappy to see SGNL get that money to help pay the bills. The Point Rousse assets will simply have been exchanged for an equivalent value in cash, that is still icluded as collateral. There is no increase in the risk for the lender and they have no reason to ask for the proceeds of the sale.
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Thtruthhurts and I have discussed this. We don't think that you get it.
If they didn't take Pointe Rousse as collateral, it would be different. But they did want Pointe Rousse as collateral. And that makes all the difference in the world.
You cannot sell a banks collateral and keep the money. Perhaps signal could renegotiate the terms and the bank may allow them to spend it on the property. But that is not a given and is totally under the control of the financer. Not the borrower.
It's really simple if you think about it.