If a company understates their accounts payables, which in turn overstates their cash flow- how is a bank to know?? I just cannot understand refinancing for terms almost 9%qualifies higher and people applauding. Will execs pay themselves a bonus on borrowed cash?
For those who don't understand how loans like this are structured or collateralized, they will view this as a positive. They are also uneducated and misinformed. The banks opened up nothing. It is FBN that is in the most vulnerale position. The banks now own this company and will not tolerate poor performance like the ignorant BOD has. Another two or three quarters of poor performance and this company is done, unless they can divest a division, which is not likely. All the shorts have to do now is hold...their day is coming.