Replies to post #110803 on Plastic2Oil Inc (PTOI)

[umiak]

Yes and JBI has been responsible, with what little debt they have had.

[jimmenknee]

Not sure what more can be said/shown that the number is increasing...

"... that continues to be an issue as the overall debt increases and cash flow continues to moves in the wrong direction. (most recent post: #msg-63486069 )"

Did you refer back to the prior post?

Level -vs- Trend-- the level is miniscule as compared to what (remember they were "debt free" at the end of 2009 "JBI, Inc. is Debt-Free" http://www.globenewswire.com/newsroom/news.html?d=181281 )?

Here's the latest JBI says about the debt: "How much debt does JBI currently have and what are the sources of debt?

As of September 30, 2010 JBI was almost entirely debt free having paid out all consideration for newly acquired companies and retiring all debts, except for accounts payable in the normal course. JBI has one long-term liability in the form of a mortgage in the total amount of $271,845.00. This is payable in monthly installments of $1,610 (Canadian dollars), and this debt matures on July 15, 2015. Additional debt may be used in the future for new acquisitions or for general corporate purposes, and investors should always check the latest SEC filings for current information." http://www.plastic2oil.com/investor-relations/faq.aspx

Comparing then the above as of 9/30/2010 with now:
3/31/2011 Accts Payable 1,681,933
LT Debt 288,792
Total Liabilities 3,628,929
Accts Payable as % of Total Liabilities 46.35%
Total Liabilities % Increase/(Decrease) 246.76%

9/30/2010 Accts Payable 1,046,535
LT Debt 271,845
Total Liabilities 1,646,298
Accts Payable as % of Total Liabilities 63.57%

Perhaps this may help too: Current Ratio = 0.71 ... doesn't matter to me how "small" it is if the assets that can be used to service it are even smaller.

http://www.investopedia.com/terms/c/currentratio.asp
http://www.investopedia.com/terms/a/acidtest.asp

The last piece that may help is the creative way JBI is trying to get through the current cash flow crunch: NOTE 8 – SHORT-TERM LOANS AND NOTES PAYABLE

(a) Short-term loans
March 31,

On October 15, 2010, the Company entered into an unsecured short-term loan agreement with an existing shareholder. The loan, in the amount of $200,000 Canadian dollars, bears interest at an annual rate of 6%. The entire principal of the loan, together with all accrued interest is due and payable on October 15, 2011. The loan was used for working capital purposes. (as of 3/31/2011) $206,280

On December 1, 2010 the Company entered into a secured short-term loan agreement with an existing shareholder. The loan, in the amount of $100,000 Canadian dollars, was used for working capital purposes and bears interest at an annual rate of 6%. The entire principal of the loan together with all accrued interest is due and payable on December 1, 2011. The loan is secured against the receivables and assets of Pak-It. (as of 3/31/2011) $103,140

In November 2010, a member of the Board of Directors entered into an unsecured short-term loan agreement with the Company. The loan, which was repaid in the period through the issuance of shares, bears no interest and is due on November 22, 2011. The loan was used for working capital purposes. (as of 3/31/2011) -

In November 2010, a member of the Board of Directors entered into an unsecured short-term loan agreement with the Company. The loan bears no interest and is due on November 22, 2011. The loan was used for working capital purposes. (as of 3/31/2011) $30,000

(b) Notes payable
March 31,

Note payable are secured by inventory of Javaco Inc., a subsidiary of the Company, bears interest at an annual rate of 6% and are due on December 31, 2011. As at March 31, 2011, the Company was in compliance with the covenant associated with this note payable. (as of 3/31/2011) $112,500

Note payable, secured by property of JBI RE One Inc., a subsidiary of the Company, is non-interest bearing and matures on October 4, 2011. (as of 3/31/2011) $100,000

http://www.sec.gov/Archives/edgar/data/1381105/000121390011002890/f10q0311_jbi.htm (page 16)

These short-term instruments appear perhaps "miniscule" but the terms appear significantly unfavorable esp. if the "secured" ones go into default :-(

[grantg2]

Oh Yeah, JBII DEBT... now there

is a HAND-WRINGING worry for shareholders, OK!

Why, that debt'll probably tank the stock back to fiddy cents again just like filing the -NT & all the other alerted issues!

Oh, waaaaiiiitttt! That -NT didn't tank JBII... it was a bogus issue!

O/S level down from the TRTN days,
debt paid off,
debt only now nudging up toward $1M...

with Javaco, Pak-It in the black,

P2O producing fuels, selling fuel, signing agreements with $6B NYSE partners...

I see much underlying value & strength... I consider all the frenzied cricket chirps & then dismiss them as bogus issues as well!

JBII will launch... soon? before AGM? by the AGM? after?

Who's to say... we'll know in 2-4 weeks!