The one thing CXDC's detractors are goin to put out... is why the $148.5 mill of 11.75% notes... when CXDC has cash of $132.9 mill, time deposits of $376.1 mill and a/r of $191.2 mill. Shouldn't the Company be able to pledge assets and get a loan for 4 or 5%? Better yet, why does CXDC even need the loan proceeds to begin with? Maybe this will be discussed on the confer call.
lucky, agree with you. Would think a simple LOC backed by assets would provide a safe level of cash available without incurring very high interest charges. Given that CXDX is a Chinese company, I'm not surprised by the rate, but I don't see a need beyond an LOC. Maybe Chinese banks don't operate that way.