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Lumpy Pom

307 Posts.

19/02/18

13:36

Post #: 31158262
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Originally posted by pods ↑

Here's some info on GSA's of which BIG has appeared to enter into. https://www.invoicex.com.au/how-it-...s-loans-what-is-a-gsa-and-why-is-it-important

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Here's the effect:
The primary remedy of a GSA is that if you are in default of your obligations, the secured party can take possession of and sell the secured property. If a Company defaults on a GSA, the secured party can appoint a receiver to manage the company’s affairs. The receiver is then able to sell off Company assets in order to repay debts to the secured party.

BIGs obligations:
To avoid defaulting under the GSA you will need to ensure you do not breach the specific obligations imposed under your agreement. Key obligations include:

The obvious (but sometimes overlooked) obligation to pay to the secured party the secured moneys owed to them under any agreement, in accordance with the terms of that agreement

You must not allow anyone else to take security over any property a secured party already has security in, without first obtaining the secured party’s consent. As a practical example this will mean you may need your bank’s consent before you open a line of credit with a supplier.

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So, seeing as those BIG isn't loaned the money and instead the customers are, it seems that, if Customers do not repay, FCC may be able to sell BIGs assets to recoup those losses. Is this correct? Perhaps thats only true if BIG were to go bankrupt? Weird and horrible if true.

Expand

Or it could just be that Big borrowed some money to cover the cost of its office equipment video storage etc and the GSA obligations are to repay the loan.

IMO Lots of speculation going on about what this means. Some posters painting a doomsday scenario (notably the posters who down ramped a week ago)

Furthermore we don’t know the detail of what was asked of Big in the ASX letter that resulted in TH. I’d be disappointed if BIG didn’t seek legal advice before responding.

Other JS claims today? Well a couple of dissatisfied customers. Few businesses operate without them.
Some issues about loan agreements and invoices. We don’t know what this is about or wether or not this is just one or two instances. Not that this would stop JS running another article trying to link these to the trading halt or the down rampers shouting conspiracy when they have no “facts” other than from JS.

KEEP CALM AND CARRY ON

All my own opinion

DYOR

Lumpy
BIG Price at posting: $2.22 Sentiment: Buy Disclosure: Held
10 Upvote

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