Kpf RE: “Many thanks for diligent retrieval of links. I am well aware of all this. However neither guaranteeing loans, nor granting subsidies nor funding equity makes these entities a lender.”
It may be a good idea for you to read an item in the recent K-10 submission of AMD to SEC (Part 1, Item 1A (Under the heading “Risk Factors”) Page 31. For your convenience I enclose a copy below.
“If we are unable to comply with the covenants in the subsidy grant documents that we receive from the State of Saxony, the Federal Republic of Germany and/or the European Union for Fab 30, Fab 36 or other research and development projects we may undertake in Germany, we may forfeit or have to repay our subsidies, which could materially adversely affect us.
In Germany all banks are compliant.
We receive capital investment grants and allowances from the State of Saxony and the Federal Republic of Germany for Fab 36. We have also received capital investment grants and allowances as well as interest subsidies from these governmental entities for Fab 30. From time to time, we also apply for and obtain subsidies from the State of Saxony, the Federal Republic of Germany and the European Union for certain research and development projects. The subsidy grant documents typically contain covenants that must be complied with, and noncompliance with the conditions of the grants, allowances and subsidies could result in the forfeiture of all or a portion of any future amounts to be received, as well as the repayment of all or a portion of amounts received to date. If we are unable to comply with any of the covenants in the grant documents, we could be materially adversely affected”.
These a peculiar “Grants” or “Allowances” that must be paid back if the German “Indian Givers” decide that AMD is “non compliant”. (see pages 80 & 81 of the K-10 document for description of the “conditions” and who has the power to decide the state of non-compliance).
