Thus, LLEG will get 50% of somewhere between $0 and $5M.
I agree on all fronts. My view is that the maximum LLEG would receive is $2.5 million (with possible adjustment) as TOTAL consideration for its equity in the Berlin plant. It may be split up into two payments...but that is it. And now that is in doubt. So they obstensively have no cash source at the moment.
However, if I put my own take aside, definitive answers to the following questions would help. Are there two distinct payments? What is showing on the 2010 EOY Financial? Has that A/R been paid and does LLEG already have cash in the bank from the first payment? And if there are two payments, what is the likely total to LLEg the public entity? $5 million or 50% of $5 million.
Or is the entire consideration a $5.0 million NOTE that was given to LBP that LLEG had 50% ownership of, stuck that number in the 2010 financial as an A/R with some assumptions as to the "adjustments"...upward of course...,its "significant interest" was collecting its 50% of that NOTE at financial close, and now that is in doubt?
Even the worst assumption before this press release had LLEG getting $5 million in total from two payments. An "initial" payment and a "subsequent" payment due at construction finance closing.
But the reality seems much worse.
