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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: augieboo who wrote (18499)	1/12/2003 8:36:03 PM
From: energyplay	Respond to of 23153

If the RRI deal can't be done - some of the bankers lose their jobs...which they don't want to do in today's environment. The banks don't want another failed energy loan on their books. If they have negotiation problems, they are very likely to extend deadlines...maybe more than once if neccessary. Possible big problem is there is some collateral, but not enough - so part of the loan is effectively unsecured. This can affect the banks capital requirements. They may make the loans in two parts, one with adquate collateral, and one with minimal collateral and a higher rate, and earlier maturity. They may then sell one or more of the loans to an entity that needs yield (retirement plan , pension fund, insurance company) It is also possible that one of these loans will have warrants to buy RRI stock at some price attached. This would be a possible source of dilution in the future. It's still not a sure thing, but I would think most of the unknown is about the pricing and terms. I don't know how we tell if the deal is not happening, other that an extension for time and then bad technical patterns. There's enough pie on the table for everybody, long as they don't start stabbing.