Then why did the NY Banks say NO to SPNG asset based lending proposal?
The Twins never talked about factoring at the Noble. They discuss a normal banking relationship extensively at the Noble, issued PRs about Lines of credit pending and issued warnings about not getting a AR and inventory line of credit and its effect on the company.
The cash position of SPNG is very bad, and I have "cash flow" projections to prove it. Mosky's warning was right on the money. They have to deal with upfront financing of the production line, finished goods and the hellish AR wait on the Big Boxes. Who take take their sweet time to pay. They set the terms, not the suppliers. Need proof, just ask Metter. He said as much to the Rangers in the MSG case. And I'm sure he wouldn't lie.
Lawsuits, legal fees, margin problems, hiding the filings, no shareholder updates and no normal banking relationship. All equal major financial problems.
And proof of this is the current situation regarding shareholders, and the lack of information. I have a feeling Rochester Chemical, Dow and whoever want cash upfront. 120-150 day cash flow cycle is tough, maybe too tough for our Professional Stock Promoters.
And for the last 10 months, all you hear from the Pumpers is "WOW, and NO DEBT". And having "No Debt" will kill this company.
They could actually be making a profit, but file for protection to get their house in order.
AI
