The bioqueen and mickey mouse(archie) haven't any better clue that anyone else on this board. What kinda beater are you driving that would be dead after a few months idle mickey? How is it that so many other biodiesel companies idle and restart based on economics. Mickey's brain is trapped in a microcap box called SYNM.
How would SYNM go under if they have no debt? The queen will just annex them? It is possible that SYNM wants to wait for funds to restart because they are the ones low on cash and TSN cares very little because of the impact of DF on their operations. Remember TSN get's +1 cent per pound above market rates #$%$ why would they throw the towel in and allow DF to use a completely different feedstock? So they can sell it to JWL and his FOG buddies?
Even though Tyson guaranateed the $100 million of Dynamic Fuel's debt, Syntrolleum is responsible for 1/2 of that amount.
Syntroleum 2008 2nd Quarter 10Q Exhibit 10.1 -- Warrant Agreement with Tyson : The Parties agreement is that each of them has effective responsibility as between each other for one-half of the Guarantee, and the Parties agree, as between each other, that each of the Company and the Warrantholder is obligated for one-half of any and all amounts disbursed arising out of and pursuant to the Guarantee, up to $50,000,000 each.
It's looking like TSN has thrown in the towel on this JV. The two parties can't even agree on what conditions need to be met to restart the plant even when the economics don't look that bad right now on paper. That's a vote of no confidence if I've ever seen one. The plant is not idled. 4 months of down time is more like mothballed. They have job openings because there are no employees left standing to run the facility if it ever were to get back up and running. Even if they were to restart, it would take massive amounts of funds after being shutdown for so long. It's like letting your car sit in the driveway for 6 months without starting it. When you do finally try to start it again, the battery is dead, fluids are leaking because many seals and gaskets dried out, you need new tires because they are dry rotted, etc.
Best strategy right now might be to bail and short it after the reverse split.
I haven't a clue what is going on behind the scenes, but as for TSN throwing in the towel I'd point out a couple of things. First, both SYNM and TSN infused $2.3M a piece to DF on Feb 15, 2013 (pg 16 of 10K). Second, unless I'm mistaken, TSN is on the hook as the guarantor of the GOZONE bonds. I can't speak to the challenges of restarting the plant.
That's pretty much what I said months ago when Bumpy was saying it made economic sense to shut the plant. Problem is restart. Everything has to be tested and replaced and one thing after another shows up after you've restarted. Now it's even employees who will need more training and new unis, etc. I also have a similar feeling about TSN. I think they're pretty unhappy and may see the 23+ million credit as being money which must come in before the plant can be restarted as they don't intend to put in anymore capital themselves.
"When Syntroleum goes under,REGI could buy this plant for pennies!!" Why and how would SYNM "go under?"...Their balance sheet looks good,and should be getting stronger with the cash sale of the small GTL site...I seem to remember you pointing out that the GO Zone funds were non-recourse...do you know exactly what that means to SYNM in a worst case scenario? ...You appear to be finally showing your "true colors" here...a little disappointing ,actually...You have some degree of talent....HOG
Hog, one of the things I discuss with my finance students is that it is really hard to go bankrupt if you have no debt. Looking at the balance sheet, I see no outstanding bonds, hence my agreement with the above.