Bank Financing for "Specialty" type projects is very difficult.
I think that, in addition to the Manu dilution problem, the local banks were turned off with the "fluff" aspect of the project and not satisfied with Management strength. With the new Management Strength and new more conservative approach to building this project, taking the fluff out, I feel that the loan might be able to get done in the near future. Now the 90 mil figure has probably been reduced. They have the land and probably can subordinate the lease payments to the loan. The 90 mil was made up of 10 mil land, 40 mil Prime Focus, which left 40 mil to finance. Now that 40 mil number should be reduced dramatically because they are using modular construction. They say they will save about 30% on construction costs by using this method. In future phases they may add "fluff" but for now we must get these stages built. IMO
Disclaimer:
These are my personal views and not to be construed as a recommendation to buy or sell a security. You should rely on your own due-diligence when deciding to make an investment
