Replies to post #44196 on Secure Point Technologies Inc (fka IMSCQ)

[joe_techi]

You got to know they don't need the loan by the very fact that some financial institute is willing to give it to them. The latest DIP loan is, I think, not coming from tainted sources. So by the metrics used by all financial institutes, you can get money if you have the immediate ability to pay it back. They don't need it, agreed. The CFO needs to learn about cash flow management. Maybe some officers need to bypass a paycheck? That is how it works for typical American entrepreneurs

[artang]

You are right, without having to pay all the interest on the existing debt, the cash flow should be a lot better, so it does seem odd they need so much cash right now. Lawyer fees are a lot higher, but otherwise everything else seems like it would be the same as before. One would think the court has to approve expenditures, or at least large ones, and that should limit the spending. Also the court had to approve the amount of the DIP loan so must have thought that was an appropriate amount.