ST Alpha - "Nope. That's not how it works for these loans. They have a maturity date (probably 5 years). At that point the loans are due. Usually they will be" (Reading a Post)

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In response to "He's still making payments so no default. On a more reasonable level of principle, kind of a dream customer. " by JD

Nope. That's not how it works for these loans. They have a maturity date (probably 5 years). At that point the loans are due. Usually they will be

Posted by pmb (aka pmb) Aug 20 '24, 09:37

refinanced by somebody else, but nobody will do that. At that point you have a big negative on your balance sheet. Generally there would be some principal payments along the way but only about 1%/year so he may be making those. But the company is worth about 1/3 of the purchase price.

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They’ll have to take a haircut on the principal, for sure, but that’s a five-years-from-now problem -- nm - znufrii Aug 20, 09:54 1
- Only about 2 years at this point. That’s when they start thinking about exits. -- nm - pmb Aug 20, 10:00
Ah. Thanks for the explanation. Hence the whole hung description. - JD Aug 20, 09:39

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Nope. That's not how it works for these loans. They have a maturity date (probably 5 years). At that point the loans are due. Usually they will be

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