So no one wants to talk about the nice sugar coating that it is good to skip a loan payment on a billion dollar loan? Tick tick tick....
4 replies (most recent on top)
Why would a lender let Chaparral have $140 million if they can see they are about to file for bankruptcy??
It's probably just a business decision. Usually if a company is going to go bankrupt, they draw down any remaining credit to use in the interim, knowing they may or may not have to pay it back. It doesn't actually mean they are going to use it to pay outstanding debts. Their SEC filing it was going to be used for normal operating expenses.
Next stop The Twilight Zone!!
No. It's a very bad sign! If they drew down their last $140 million in credit, why couldn't they have used part of that to make the interest payment?