Sino Agro Food Inc (fka SIAF)

[RealDutch]

Q&A. Dec,14.

5. Can you please explain how you plan to pay all Company debt, including convertible notes, ECAB, an extended $6M loan, and any others?

The Company has been and is assessing, discussing, and negotiating various plans to address the repayments of “Legacy Debts” the Company incurred during the past years, before and during the brunt of the business down turn. Some of the results are encouraging yet they cannot be assessed with certainty right now. This uncertainly was a factor in the Board of Directors decision to postpone the dividend.
The most practical way to pay down the debt – absent a financing that may or may not materialize and may or may not allow partial funds to pay down existing debt – is to eliminate or resolve some operational and mismanagement issues at Aquafarms 4 and 5, while refining some at Aquafarms 1 -3. We have begun this process.

It almost sounds like they are loaded with debt when in reality they have very little debt (-to-equity). How this can even be an issue is a mystery...

AF4 needs more money. And they are unable to pay CA as has been the case in recent years. Perhaps the Angola deal will give CA a decent revenue stream (with high margins). I just don't see how AF4 can solve our debt problem. It sounded strange to me the first time when I read it and it still does.

But the key thing here is the part in bold, IMO. Financing can be either debt or equity. We all know that TRW is looking for a loan but the equity part is what is interesting (either pre-IPO for TRW or a partner for CA). On this we are kept completely in the dark. Which doesn't come as a surprise. We can only hope that Solomon has an ace up his sleeve. He must... IMO if they are considering paying cash dividends.