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They can probably pay in kind and screw the investors more. Better than paying cash.
by nissimk 11y ago
They can probably pay in kind and screw the investors more. Better than paying cash.
- jamesdwilson 11y agoelaborate please? this is not my area of expertise.
- nissimk 11y agoIn kind interest payments let the lender increase the principal balance instead of actually paying interest. In this case it would be like issuing 10% more equity per year instead of paying the 10% in cash. It wasn't mentioned in the article if they have that option, but it wouldn't surprise me.