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Technology Stocks : Thermo Tech Technologies (TTRIF) -- Ignore unavailable to you. Want to Upgrade?

To: Casey who wrote (3929)	4/9/1998 4:41:00 PM
From: David Pickering	Respond to of 6467

Casey, Thanks for the excellent treatise on non-recourse debt financing. Looked like one of my posts (long!). I needed the brush-up. <BTW, has anyone heard of a consulting firm by the name of M.M. Dillon Limited? I'm hearing this firm did some DD for the Pension Fund that will be financing Oshawa and Niagara. IR is saying there is a "good possibility" that news on the financing will be coming next week.> I posted the above on Yahoo (#4024) today. Could this DD possibly be for the "bankable feasibility study that ensures that non-recourse debt will be secured..."? <Robert, I am convinced from your posts that you are paranoid.> Casey, did you see "Conspiracy Theory"? Robert reminds me of Mel Gibson's character! ("Not that there's anything wrong with that." "No, nothing at all."- Seinfeld) Regards, David Pickering

To: Casey who wrote (3929)	4/9/1998 6:06:00 PM
From: Ted B.	Respond to of 6467

I'm with you Casey. The financing is just waiting for the Dillon report which I understand is now complete and fully endorses the technology. That's the l;ast part of the DD. We should see the commitment soon. It may be that a Board decision to lend that much money is needed and so the actual issue of the term sheet may have to wait for the lender's formalities. The issuance of the term sheet does not mean the deal is closed. It means a firm commitment to lend according to its terms. I am sure you know all this. There are a lot of small minded people out there who seem to take delight in keeping their nose to the pavement looking for every bit of dirt on the road. Because of this they don't see the truck bearing down on them. They don't see the forest for the trees. One can show how "smart" they are by nit picking or they can show how really smart they are by focusing on what really counts. There are so many things of major consequence happening that if one ignores them it will be to their detriment. These detractors can if they like argue that to ignore the TPP lawsuit or some of the delays etc would be to their detriment. That is their choice. I for one do not want to be sidetracked from the main thrust of what is happening.

To: Casey who wrote (3929)	4/9/1998 9:30:00 PM
From: Robert Pool	Read Replies (2) \| Respond to of 6467

<<<NONRECOURSE FINANCING????>>> Casey, I must say I agree with almost all of your well thought out post (which is very much appreciated). I did not mean to say that the process of achieving financing of any kind is a speedy and simple process. I felt it inappropriate for a CEO to suggest that what he did, completion by month end especially when as you said most of the timing of the process was not in his control. He also stated that he had been working on this financing with this institution for almost a year, which would be more than enough time. I'm far from paranoid, but that's another story. As to the definition: Oxford English Dictionary recourse, Law The right to demand pecuniary compensation from one: esp the right which the holder of a bill of exchange has to come back upon the drawer and indorsers if the acceptor fails to meet it. Nonrecourse, relinquishes this right. It's been a long time since I have referred to these huge books, Thanks. You explanation of the process to reach the point of signing the finical documents sums it up well. (However, the lenders will probably want to be assured that if they take over the assets, there is still a committed operator to operate the facility - that may involve some control over the license -i.e., that TT can't forego the licensing agreement with Newco, for instance). Sorry not in this case. I really pressed Rene on this issue. Rene was quite adamant about the license falling back to TT if either Oshawa Bio or Niagara Bio were in default, maybe something has changed over the last 2 weeks? According to Rene unless I misunderstood him it is not the JV Ontario Thermo that is securing the funds it is Oshawa Bio and Niagara Bio. You could find out from Lyle in IR, he listened in on the conversation. Your right about the risks related to the period of construction. Payments very rarely ever being before construction is complete, and then there still is usually a short grace period. At least this has been my experience in constructing commercial and industrial buildings. <If default were to occur during operations, for whatever reason(s), then the lender will have the right to take over the facility and the operations of the plant and do whatever he deems necessary to get his debt serviced. Investors in Newco will probably lose their equity investment, but that would be the extent of their risk.> Again as I refer to the definition above. Do you have a Sears, Bay, Eaton or Canadian Tire card? Well, these cards are all nonrecourse loans or lines of credit. Not one of them can come into you home and take back what you bought with the credit they extended to you. But there's always the nasty Credit Bureau. <As you can see, TT only has to 'lay out' their portion of the equity investment in the project. In cases where they have negotiated 100% non-recourse financing, they will not need to provide any equity. In the case of Ontario Thermo Tech, where they are in a 50-50 JV, they would need to fund 50% of the equity contribution.> This is the part I had the most problem with as you would be able to understand. Rene made it very clear that all 100% of the financing ($32,000,000) 16 mil each would be nonrecourse debt financing. This you can also confirm with Lyle and other posters here. I asked him several times about this and I received the same answer each time, 100%. I must say I did enjoy reading your post it was a like breath of fresh air. Robert Pool