Replies to post #127730 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

How could Solomon negotiate an early retirement of the ECAB loan without some kind of leverage here

You are reading too much into this. Solomon already knows he's running out of cash 2 years from now. And FD wants to convert for a lower price than $10. The 10% interest rate doesn't benefit either party. I never understood that part.

[phoenike]

I'm trying to get more information om what will happen after the loan is retired,

I talked to FD several months ago so things might have changed becouse that was during their initial discussions. But by then FD wanted to have a new format, he acted professional and did not talk about any details so I dont know what it was. My feeling was that it was smth which would be approciated by shareholders. He also mentioned that it was easier to nego with S since he was little desperate and frustrated.

For me this should mean that S is more flexible to agree on changes that he might not prefer, such as A shares is my best guess. Maybe that FD gets to be in the board, maybe he gets to choose some ppl in management team.

I see no reason to not be optimistic about this, the only thing that worry me is if smth happend during the negotiation and what S is refering to is a complete exit from FD. But this is not the likely scenario IMO.

[phoenike]

I don't think the wording mean to much. He has to, as a CEO, claim that he is happy with the deal. He would never make a deal and publically say thay he is not happy with it, even if he is not happy.

But I think Solomon has the leverage that FD is "trapped" in the agreement that he doesnt like, to convert at 10 dollar is not amazing contract consider pps of less than 1 dollar. He needs more than 1000% pps increase.

Also I think Solomon is little desparate, but he will not agree on anything becouse he knows he has the megaloan. So S knows we are not depended on a new deal with FD, but he could use the new deal to quick solve some problem, eg. colladaral shares in order to get even more pps triggers for eg.