Comment by
besttobe on Jan 15, 2023 9:25am
The question will be.....Will they have the profit and FCF to pay down the debt. As it stands now they are a breakeven/loss company, with zero FCF. GLTA
Comment by
lscfa on Jan 15, 2023 9:40am
the bankers think so, thus the loan..
Comment by
besttobe on Jan 15, 2023 5:53pm
The bankers have nothing to lose. They now own the company for 20cents on the $. Abviously you lack experience regarding banking and finance. GLTA
Comment by
dawggone on Jan 16, 2023 10:20am
bankers do not lend base on strength of collateral ( but it helps). they lend on ability to repay the loan (cash flow).
Comment by
besttobe on Jan 16, 2023 10:37am
Dawggone wrote "bankers do not lend base on strength of collateral ( but it helps). they lend on ability to repay the loan (cash flow)." Banks lend on both collateral and FCF. Just read the Quipt bank agreement for a better understanding, as to what the terms are. Goodluck to you...
Comment by
dawggone on Jan 16, 2023 11:10am
bankers want their cake and eat it, too. they want loan repayment with interest. they do not want to take over ownership of collateral. that cost them money. bank regulators wil classify loans to different degrees if they are or become collateral dependant. banks or bank investors do not classified loans.
Comment by
besttobe on Jan 16, 2023 12:49pm
The higher the collateral secured the less risk... then the bigger the loan received and the lower the interest rate given. Sorry, but that is the way it works. We shall see how much debt Quipt pays off. We shall see.
Comment by
dawggone on Jan 16, 2023 3:32pm
don't disagree with most of your last post. my point is a bank's primary emphasis is customer ability to repay. sure they want ( and get) lots of collateral. however, they have to believe there is abiliity to repay the debt without having to foreclose. otherwise, the credit will be subject to being classified by regulators or in-house analyst.
Comment by
besttobe on Feb 15, 2023 11:11am
ISFCA wrote ', the co. pays down $14.6 mil/yr per credit agreement " Your thinking is flawed. They already stated they will have poor cash flow this year and will go further in debt, thus lower multiple. Thus why I am short. Next few Q's will demonstrate that, as discussed during the CC. GLTA
Comment by
besttobe on Feb 15, 2023 1:11pm
This is debt used for liquitity...IE pay debt with debt. We shall see... So between our ability on DDTL and the line of credit we feel like extremely comfortable with where we stand
Comment by
Tropicalsun on Feb 15, 2023 1:52pm
Anybody that listened to the call, knows that B2B is outright lieing again and posting false information once again. Every word of his post is a complete LIE!!!!!!!