You guys do know that in Jan 2017, CMI issued an 11% Senior Secured Debenture to GF Comstock 2 LP due 2021 to the tune of $10,723,000, collateralized by all CMI assets and 100% of CMI equity in CMI subsidiaries.
CMI borrowed the money to pay down existing debts, and are paying 11% vig to do it (except for the money owed to Caterpillar Finance - didn’t CMI and Cat have a problem about this in the past?). For the first 2 years, they can and have paid the interest by issuing new debentures. Kind of like getting new credit cards to pay off the interest on the old card. But starting in Jan 2019, they have to pay the interest in cash, and the principal is due in full in Jan. 2021 (remember balloon payments during the housing crisis?).
While piling on debt in this way, Corrado is still getting his $26000/month salary.
Nothing to worry about here!
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