Do you, or someone with a financial background, understand what SLR bought?
I read what I could of BNP's debt facility. I think I have the following straight - but I'm a naive moron so don't sue me if I got it wrong. Do your own due diligence (seriously).
BNP somehow got a first lien on the properties and assets of Harte, as security when offering the debt facility. Please correct me if I am wrong, but that means Appian and the other lenders had to sign off on being demoted in priority, presumably because the BNP facility gave Harte the only chance of turning the business around, and actually getting Appian paid back.
My understanding of "first lien" is that BNP gets to extract whatever value they can from Harte's assets, up to the amount that BNP is owned, before anyone further down the line gets a dime.
I don't see the reasoning why shareholders should be concerned that SLR might have taken on the other outstanding debts of Harte. BNP surely didn't take on all of Harte's other debts (right?), all they did was loan Harte money, and in return got first lien if Harte defaulted. So why would SLR's position be any different?
SLR Price at posting:
$1.67 Sentiment: Buy Disclosure: Held
