What are we to make of this reference in the priliminary prospectus? That the proceeds from the rights offering will not go to the Bond holders but will be used for working capitlal ....... ? Any comments from anyone? Use of Proceeds. The net proceeds (net of all dealer-manager, rights agency,
legal, accounting and standby fees and expenses related to the Rights Offering)
received by the Company in connection with the Rights Offering and the sale and
issuance by the Company of the Standby Shares to the Standby Purchasers will be
used to fund working capital, operating losses, maintenance Capital Expenditures
and all reasonable expenses associated with the Recapitalization Transaction and
for no other purpose.
(l)