But the $15.1 million dollar question which is most troubling me...

But the $15.1 million dollar question which is most troubling me about the status quo, is?

Where did the money go? Were the funds used for CapEx or OpEx, or both?

What kind of financial acuity has been applied to the use of borrowed funds through a properly structured and executed financial operating plan? ie; Budgets, Cash Flow management, and repayment schedules.

I am trying to speculate about what kind of parallel world might have existed in a board room, where spending borrowed money without an assurred arrangement in place to pay down the debt, would be understood as a smart business strategy. Are we to conclude it was never intended to repay the loan? On the never never?

The ensuing questions must now be about a proper financial analysis to determine all the circumstances surrounding this debt, why it was necessary, and what the funds were actually intended/used for. And more to the point; Why was no action taken to pay down the loan, while the business was cash flow positive?

Anyone would know (solvency 101) that if you draw down borrowed funds, then you must have a strategy to repay the debt and maintain faith with the lender. Whether or not they may be the lender of last resort. It is difficult to understand, even in the initial situation with the facility ERM provided as interest free borrowings, why it would seem no action was in place to pay money off the debt.

Beyond that, the undelying purpose of this loan looks to be questionable because in my opinion, the debt itself represents a restrictive mechanism likely to bring unintended consequences in the event of revenues drying up, or a lack of funds available to meet financial committments. Hmmmmm, Unintended consequences indeed!

Meanwhile, the serious leverage this loan has brought against the future of Empire is no minor outcome. Perhaps it can now be seen as an opportunistic means to an end, as there is nothing about this eventuallity which would measure up as being aimed at enhancing shareholder value.