Its all good Names, Pareto and any Debt Financiers know exactly...

Its all good Names,
Pareto and any Debt Financiers know exactly what it means and what it entails ; )

All debt financiers will always look at the absolute worse case scenario, being the final asset value if anything goes wrong with any project.

That is why you must have an economic robust project with substantial Free Cash Margins, as with out them there is little to no residual asset value and that creates a fatal flaw.

No Fatal Flaws as Pareto -WKT was able to Launch the $40M USD Loan Note.

Projects with poor cashflows and lack viability, have lesser Free Cash Margins, have Higher Capex, have Higher Opex, have Higher Working Capital Requirements add substantial risks to any project and are likely indeed to have no residual asset value, which in essence creates FATAL FLAWS for any project.

Remember those important words for WKT ----> NO Fatal Flaws ; )

All part of that very important Stress Test that is done aggressively by Risk Averse Debt Providers that ensure only the worthy projects are financed and that they do not get caught with unworthy projects.

Dont worry to much about WKT, you should perhaps be questioning if yours and other projects can withstand the stress test when having to undergo the required Due Diligence process. Not Likely IMO.

NFF NLN