So GTL would not have been needed/created if CXG had the financial wiggle-room to hold the locomotives themselves. Could raise questions about valuations I guess.
Still, my big concern centers more around the deal falling over if GTL is unable to finance it. Does Greentrains indeed have a pile of cash?
My guess is that GTL planned to borrowing heavily using the $9m pa to service the debt. This would have worked in the past, but I believe the bankers will now require the company to put up a good chunk of equity.
Don't know if this company has that equity or the ability to access this.
Mike Coote invested heavily in NFL, which hasn't worked out so far. Not sure if he has the ability to provide support to GTL and so ensure this deal gets completed. It is vital for CXG that it does.
Any idea what the paid up capital is, and who the largest shareholders are, in GTL?
CXG Price at posting:
80.4¢ Sentiment: LT Buy Disclosure: Held
