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Re: MasterBlastr post# 6320

Tuesday, 06/23/2015 2:00:09 PM

Tuesday, June 23, 2015 2:00:09 PM

Post# of 6673
This is true what you say the collateral has been returned to its owners that secured the debt with the collateral they raised from shareholders for the loan and has been used too advance time and now is time to pay up.


Taking on debt is like advancing time into the future selling equity for collateral is part of that process.


Why can't revenue from the collateral be used to pay for the debt and in that way your collecting profits by paying the debt as well as supporting collateral to the debt.


The revenue generated by selling shares that had zero revenue were the credit equaled the assets that was set at par and sold on past revenues due to previous credit done before the likeness of the invention of Netflex is crazy.


You see because of debt revenue always lags once the debt is paid the revenue falls so it is there that a company will sell shares before the revenue falls and use that collateral to borrow more debt then using the collateral to pay the debt.


So we have a company that can raise capital in a falling revenue cycle because of how debt can time shift payments on debt. Then there is new R&D along with depreciation on material and labor while the product or service is under development.


Time management of credit and the collateral that holds it in place is up most important to keeping a company out of trouble but a chapter 11 can add more time to get the house in order but I would have to agree time is running out.


Read chapter 11 BK rulings