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 Politics : RAMTRONIAN's Cache Inn

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To: Gutterball who wrote (6910)11/29/1998 10:14:00 PM
From: djduncan of 14464
 
Dan,

They must first pay back the loan to the NEBF (over $7 million), which has a higher priority claim on Ramtron's assets than the preferred shares. If RMTR refused to pay the NEBF loan without NEBF consent, then they would be bankrupt. The NEBF will not decide that RMTR can pay redeem the preferred until their loan is paid off.

They could probably offer to redeem the existing preferred shares for face value right now. Possibly some of the holders would take that deal. But even then, where does RMTR get operating cash, or cash to fund its continued losses.

The situation is pretty bad, unless you think RMTR gets some major profits flowing soon.
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