California Grapes International, Inc (CAGR)

[pantherj]

I'm sure AGS has protected themselves more than adequately. Certainly more than shareholders are able to protect themselves. Typically, in these types of funding vehicles, the lender is going to make a return; win, lose or draw. In some cases, floorless debentures, for instance, the lender actually does better if the company does worse. The classic term for this is "Toxic Funding," and many, many pinkies have been caught up in that trap.

Of course, we don't know what AGS' terms are because we haven't seen, and won't see, the actual contract.