Replies to post #5828 on KinerjaPay Corp (fka KPAY)

[236T568]

Well said

you just described a bank/stock fraud scheme

these never end well for the stockholders of the company

The timeline:

1. Sometime before 10-23, Edwin finished negotiating with CCBI for a $25 million non-recourse credit facility (a loan secured by collateral).

2. Sometime before 10-23, Gabriel Capital goes to HSBC to get a bank guarantee (the collateral for CCBI), which the banks credit committee approves.

3. 10-23 we get the 8K letting us know that #1 and #2 happened. Also letting us know, the $25 million guarantee from HSBC would be received by CCBI "within the week".

4. 16 days pass with nothing.

5. 11-8 we get a press release stating "Finalizing the receipt of the initial HSBC bank guarantee from Gabriel Capital Ltd has taken slightly longer than anticipated." and we should get the guarantee over the next week.

So Gabriel can't manage in 16 days to get whatever their collateral is through a monetizing bank. So HSBC was willing to offer a bank guarantee, but Gabriel had to monetize something to get the guarantee.

Now there's other people willing to try to monetize collateral? Why didn't Gabriel find out from a monetizing bank first if there collateral would work? If their having trouble monetizing collateral for the first $25 million, the next $175 million should be a breeze. Right?

Keep in mind, the loans given out will likely be around 65% of the value of the collateral. So Gabriel needs to find something worth around $38 million to pledge for the first guarantee. They would get the collateral back when it is repaid. So if the plan is to keep these guarantees coming up to $200 million, Gabriel has to keep finding collateral.

KPAY is going to issue them Series F preferred stock which cant be converted until the share price reaches $1.80. So Gabriel doesn't get anything back until we get to $1.80. How long will that be? Do they have the assets to pledge to keep the guarantees going until that point?