ATP Oil & Gas Corp fka ATPAQ

[eddy2]

So many never give thought to collateral depreciation to debt and how a company is going to support the short fall of that collateral.


Now for the most part if the debt has not defaulted the lender will over look this short fall or until the debt comes due that often requires a selling of the asset that is held for the collateral to revalue its true market value should it be a unique asset building, land or specially made equipment.


Now the other alternative is to apply a intrinsic value on top of the market value for the asset that would be profits from revenue no profits no intrinsic value can be established for the collateral asset in question.


Anyhow I'm glad you brought that to light the question now is will the company be turning the corner and showing a profit were the intrinsic value for the depreciated collateral show up on the balance sheet to offset what share holders have spent to date in equity spent ie: capital surplus as well as convertable debt owed and were it can get back too showing a positive earnings instead of a negative one we are seeing now on the balance sheet.



Big risk big rewards the question is has this gone to far the other way.