Originally Posted by Carra_is_legend
Well, if they keep up with the payments for the 18 months, why would the bank refuse them money in 18 months? Banks will see us as a stable business and would only be happy to lend the money. They have to lend money to make money and would only be happy to lend money to stable businesses.
Tom is right - the only way to hit them is to hit them in their pockets.
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Because in 18 months time Hicks' personnel wealth will probably be significantly lower than it currently is, just if the dollar continues to plummet it affects his personnel wealth. All of his other businesses are also funded in the same way he funded buying us, so he has the same problems with everyone of those businesses when it comes to refinancing loans.
He could wait until the loans need refinancing and hope the financial climate improves but thats a very big gamble, if the US economy continues on the same path he can forget about any refinancing and he can forget about the levels of profit hes currently looking at for his share.
Theres certainly no guarantees that any bank would refinance these loans in 18 months time.