The lender will not be repurchasing stock from the market if they dumped the collateral shares simply because they are not stupid. And there will be no short squeeze. They already have their butt covered legally, if that's the case. As I said in my previous post, it's plausible to assume that SIAF may have breached the terms of the loan one way or another.
The loan in the US is close to $7.6M. The shares were issued for an average of close to $5. It's in the filings somewhere. There shouldn't be any debt left if they sold the collateral shares, according to my calculations. So there shouldn't be more collateral shares issued either.
The loan in Asia is a revolving $20M credit facility. A loan on behalf of the Shanghai Distribution Center. It's not SIAF's debt. The SDC has to pay interest on it and eventually repay the loan.
Here's what hasn't been posted before.
SIAF mentioned in one of their filings that the SDC has always paid the interest on time. What they didn't say... IMO, is that SIAF did the same with the US lender (...). Make of that what you want.
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