Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Robert Pool who wrote (3935)	4/10/1998 3:28:00 PM
From: Casey	Respond to of 6467

Robert: I'm currently out of town and have to access the Internet by long distance, so I can't take the time to post much. I've saved your post and will answer it when I get back home next Tuesday. There are still some erroneous conclusions. BTW, when I made the paranoid comment, I concluded with <g>, meaning I was joking. Hope you didn't take offense or offence.<g> Casey

To: Robert Pool who wrote (3935)	4/10/1998 10:02:00 PM
From: Casey	Respond to of 6467

Robert: Project non-recourse debt financing ( cont'd): .<<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. >> David, on one major project in which my firm was involved, following the culmination of the pre-investment study, at which time the financing was expected to close, it took a further six years to reach financial close! Over this period of time our senior management, on more than one occasion, were convinced that closing was imminent, and our IR people conveyed this. A few years later, they were right! Had you been an investor over this period of time, you would have gone mad<g>. << 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? David, read what I wrote carefully. I didn't state any hard and fast facts. I wrote "..the lenders will probably..." This is from my experience. It may not apply here - depends on what the lender(s) demand(s). But I'd be surprised if the situation were much different than what I wrote. You're disagreement may stem from a semantic confusion about what I meant i.e. Newco would need to retain the usage rights to the TMP license in order to continue to operate the plant, now under control of the lender, should the lender wish to continue to do so following the default. We're not talking about what Trooper is seeking vis-a-vis a license. Each Newco has no ambition other than to build, own and operate the one TMP for which they have contracted. They do not want to go out and build, own and operate other TMPs - something which Trooper aspires to do. << 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 >> I agree. Please re-read what I wrote - it is the projects, i.e. the Newco's that get the financing: Oshawa Bio Conversion Inc. and Niagara Bio Conversion Inc. TT and Ontario Thermo Tech would be the joint owners of these Newcos. <<. <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.>> Yes, to the two Newcos. In the case of 100% debt financing, neither TT nor Ontario Thermotech would need to inject any equity. In the second sentence of the penultimate paragraph above (italicized), I alluded to a situation where they would jointly undertake a project which did not have 100% debt financing. The way in which I explained it was not clear, so I understand the confusion. .<< I must say I did enjoy reading your post it was a like breath of fresh air >> Thanks. My pleasure. After doing my DD and getting to understand this situation, I realized that there is a lot of confusion in many issues relating to TT. I think Ted B. hit the nail on the head when the following is applied to about 90% of the material that I have read on this thread during the last couple of months. "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 (sic) are by nit picking or they can show how really smart they are by focusing on what really counts." Casey