I don't think this is an increase. I think this is a new loc, but yes that's 100% true that just because you have one, doesn't mean you'll tap it. Regardless, I can't imagine a Chinese bank OK'ing that type of line based on net cash flow of Eon, alone. It seems too low.
And the flip side of that, at least in the U.S., is that every loan or line of credit application needs a business purpose and 14.5 mill USD is not going to be done without that. In other words, as I'm sure you know, you can't apply for a business line of credit with a purpose of "because I want to have the money in case I need it." Not being a wise owl, just don't think Lugee would apply for a line like that without expecting the need and return to outweigh the cost.
That's why I'm interested in knowing what the asset value of Eon is so that there is a clearer understanding of LTV. With 80 mill in revenues, I can't imagine a balance sheet with an asset value larger than that. Even if assets are the same amount as revenues an LTV of 14.5/80 is large, but I'm thinking it's even bigger than that because, normally, revenues are much larger than asset value and we don't even know what debt is already on the EON balance sheet.
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