ST Alpha - "We restrict dispositions separately, essentially outside the ordinary course of business." (Reading a Post)

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We restrict dispositions separately, essentially outside the ordinary course of business.

Posted by pmb (aka pmb) Aug 27 '10, 08:52

What it clearly gets at is not selling off significant assets outside of the ordinary course of business (since we're lending to the business as it essentially currently operates). I agree that if the investment is not made with cash, but instead a significant chunk of other assets, that it might not be permitted, but to suggest that using cash to make an investment is really a disposition of cash, to me is absurd. Never in a million years would a lender try to call a default for a company using cash to make an investment that we otherwise permit.

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[deleted] 2
- Like I said, I can't argue the point by saying that they're wrong, but there is no other law firm out there that raises this point because it would - pmb Aug 27, 09:02 1
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We restrict dispositions separately, essentially outside the ordinary course of business.

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