Replies to post #157908 on Green Energy Enterprises Inc. (GYOG)

[LCLiving]

I think you need to look at all the info available. What changed, imo, was Newby screwed up. Originally, Quasar gave $725k to Newby and that would have been the closing fees needed for the $10 million. Then, in the email he sent in reply to Anvil, he stated this line-

As far as the $10mm line, I decided to close both loans simultaneously due to the time is of essence put on the company.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51737127

The problem with this new strategy was they needed $5 mil from the $10 mil loan to pay the fees for the $100 mil. All this was stated in the PRs. I believe his new strategy backfired when he went to close and they asked where his fee money was and he replied, "oh, we'll just pay it out of that first $10 mil." No lending institution that I know of would lend money with the closings paid out of the loan. Hence, we have to get the money up front this time around. It was not a rejection and will have no affect on their ability to get financed, imo.

[surfguy]

It all depends on what the rejection was for. In this case it was due to the upfront cash fees required that the Lender imposed basically as a last condition that was unanticipated. The collateral assets were already qualified. Do you think Newby and Dean would have wasted all this time going through the lending process over these fees had they known the Lender was going to stick it to them like they did. They were obviously caught off guard. Now it appears those fees are intact and ready to be paid and the assets have already been prequalified.