I am now 90-100% sure we will have the loan in Q1. I always speak my mind (and my mood) and after the CC I am considarably more positive towards financing of TRW.
I have done syndicate refinance with much larger loans then the one they are working on. WHEN a bank suggest to syndicate the financing, this lead bank has already (at administration level) decided to work for a positive outcome. The lead bank will concider risk spread based on loan size, sector expositure, case exposure, other specifics etc.
The invited banks will work together with case analysis, like Dan said. The way he correctly described the process and time frame, makes me believe both that they actually are in the process and that they are at the closing spot.
The boards will receive formal approval requests from administration and risk committeès, and they generally have 1 board meeting a month for review of loan applications.
The choice of 5 banks (lead + partners) tells me that the risk is considered moderate to high. And/or that the banks involved are not big banks. I think they view the security being offered by TRW is limited and wish to spread the risk further. Having 5 sources is ok, but slows things down. Worst consequence is if you get into default and need help. In such case 5 banks makes it more messy.
When I wrote the post you refer to, I was so frustrated with CEO/CFO that there was no room to give them anything. Today I am more positive, because I now think recovery of my losses are closer.
Of course they are the ones mostly involved with financing, but I am sure that the indian guy and Tony have given credibility towards succeeding in the aqua business.
I want to wait to congratulate CEO/CFO and fellow shareholders, but I was close to do so in this post.
