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Thursday 11 July 2013

YTB Rolls The Dice With DIP Loan

In a SEC filing today, YTB advised that they have found a lender (Jamravel) willing to lend then $420,000 to cover operating expenses while they try to re-organize under bankruptcy.

The loan is secured by a"first priority security interest and lien on all of YTB’s assets."  According to the latest valuation, YTB has a Market Cap of $969K.  The loan must be repaid with 9% interest by June 14, 2013. 

YTB is no stranger to short term loans with "loan shark" interest rates. They gambled and lost several times with that tactic.  

It boggles the mind that YTB is creating so many millionaires and is such a great product, that they are in bankruptcy and cannot obtain competitive interest rates.

It is unknown if the lender, Jamravel, has any relation to YTB or any of the former executives or directors.

Email ThisBlogThis!Share to TwitterShare to FacebookPosted byJohnat2:46 PM

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