Picture this if you will...
As disgraceful as the GMD managment has been with regard to these loans, they have essentially ensured (or tried to) that they cannot be removed from GMD management.
Let's follow the logic...
1. The loans are unsecured
2. The loans were made to companies controlled by common LMX and GMD directors
3. Loans were also made to Farrell's privately owned company
Therefore, if, for instance, the current group of common GMD directors left GMD (voluntary or otherwise)...and the other companies these GMD directors represent were unable (or didn't want to) repay the GMD loan...GMD (the remaining company) has nothing but an unsecured commitment that the company will ever see their money again...
If Farrell alone resigns as president of GMD...and even LMX for that matter...again, GMD is left hoping that he will fulfill his loan obligations, but nothing for security to back it up...
If GMD management stays, who knows what else will arise. This unsecured loans business may give an indication of what has already gone on.
If GMD management leaves, GMD (the company) is left with little else than a piece of paper saying that they will get their loan back which, did i mention, was unsecured.
I don't know who the winner in this little fiasco is...but i know that the common shareholder is the big loser.
Somebody...anybody...tell me if i'm wrong.
I have yet to see one single comment that justifies these loans in a manner that is beneficial to GMD (the company)...as opposed to the GMD (the management). And let me tell you...the silence is deafening... |
