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It's not the cashing out that's unusual. In a vacuum, sure, using investments as collateral for loans is SOP. Using the controlling share of a company that's p
by bduerst 7y ago
It's not the cashing out that's unusual. In a vacuum, sure, using investments as collateral for loans is SOP.
Using the controlling share of a company that's planning to IPO in less than six months? That's a bit more unusual. It makes you wonder about the terms, or fuels your imagination with who's fronting the cash for something that risky and what types of situations justify it.
- jjeaff 7y agoMy guess is they will have to include a few things regarding that in the disclosures.
- bduerst 7y agoThey really don't though. It isn't WeWork that's taking out the loans, but him the individual.
- jjeaff 7y agoI think if your founder and controlling owner is leveraged to the hilt and there exists a risk he could lose the shares to debtors, that seems like a big risk investors should know about.