bid event imminent ?, page-8

infose,

the last LOC i used was binding on the lending Bank with an annual anniversary date at which time the LOC could be withdrawn or altered.usually yearly or bi-annual
The only option for breaking that by the bank was a material change in circumstances which were defined in the contract.My point is the LOC MAY NOT BE ABLE TO BE WITHDRAWN,prior to it's anniversary date.Rates payable on advences CAN BE LESS THAN ADVERTSED RATES as well.
Also a reason,some people pay their insurance premiums yearly,to ensure binding contract terms for the period.Very handy when you've been flooded and the monthly payers find their policy altered to exclude floods before the next flood 2 months later.

Bank conditions vary,of course depending on your history and with some your integrity in past dealings.

When anyone borrows money,no-one can guarantee it ends in a happy ending.Nor can a gambler guarantee a win,or there'd be no betting,or investment.

So what point are you making,another company,who had a LOC when borrowed money that was freely available more so than fresh air at the time,made a bad investment and went bust?Was it's line of credit withdrawn and did that cause it's collapse?If so say so.If SO,So what.Where's the comparing apples with apples in that?

I walk across the road and people get runover,doing the same.

So by your logic FML now has a line of credit,so can spend up on overpriced companies and go bust,when the bank withdraws its support?
Possible,i'll grant you,but i and many others here think otherwise

Great logic.I am truly impressed,but still don't get the point of your argument.

My argument is quite simply,the company is credit worthy enough to get a LOC from a TRADING BANK,whether they use it or not and given the size of FML,this is a level of commercial endorsement of FML,IN THE CURRENT ECONOMIC ENVIRONMENT given it's low level of production last year.
I consider it to be VERY SIGNIFICANT.Try rushing unto your nearset bank and ask for a LOC and see what reception you get.YOU ONLY GET THEM IF YOUR BIG AND CREDIT WORTHY ENOUGH.
I didn't think FML was big enough yet for the industry it's in.

DYOR+DYODD