SunWorks Inc (SUNWQ)

[SandridgeEnergy]

The main issue with the loan is that it shows how deeply distressed the company is financially. It's something like 850-900bps above libor, which is pretty far into junk territory for debt these days.

However, the last loans (p-notes) had effective interest rates of like 100% - 1000% (which was basically management taking a loan out with itself and paying themselves lavishing with your $$$ because Nelson lied about not being linked to Greg Boden, who was on the other end of that P-note) so we have come a long way from that.

I am not counting the loan they took out at on Dec 31 and paid back on Jan 1 which was used to manipulate the balance sheet into looking stronger.

Doesn't make the loan the wrong move, it was needed for sure. But it's not a sign of strength either. Management being involved in it was probably not optional, but who knows.