Subordinate - lower in rank or position.
Collateral - something pledged as security for repayment of a loan, to be forfeited in the event of a default.
BIEL committed all of its assets as Collateral to Ibex/KW for their Loans in 8/2009.
In 1/2018 BIEL had to put EXIM Bank in front of IBEX for the rights to BIEL assets in order to extend the $500,000 Loan to 8/2023.
When a company goes BK a Lawyer and a Trustee would be appointed to manage the sell off of assets, they would be first in line to be paid along with expenses related to the dissolution of the company .
In our scenario EXIM would be second in line to have the balance on their $500k Loan paid from the asset sell off proceeds.
IBEX/KW would be third in line to receive the asset sell off proceeds.
With $6 million tied up in BIEL Loans it is very doubtful that KW, who is not drawing a salary from BIEL and has not Converted in 17 months, has $500k available to pay off EXIM.
In any case a BIEL default is all just speculation that I have been hearing since I first started investing in BIEL 11 years ago. Making BIEL Solvent is KW's best bet on getting her Loans repaid. Getting revenue flowing to BIEL from her 5 new Partners will accomplish that.
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