[Michael I]

How big is "Huge"? Is their book smaller or larger than their outstanding balance with Wells?

In 2014 when compared to on deck value they said can is worth about 2 billion.

[staten]

In 2014 when compared to on deck value they said can is worth about 2 billion.

3 years is a long time. Yes-huge is a relative term. The haircut to their securitzation due to "misclassifed" MCA's was astronomical. Wells wants out. ASAP. The other lenders in the facility want out ASAP. They need to take haircuts on deals to get cash in the door. Future debt capital will come from hedge funds who will keep them on a short leash and the rates will be at least double-12-14%. Every single merchant should be negotiating a 50% (at least) discount. If they are trying sell portfolio-likely reps will not get renewal commissions. Entire process has been handled very very poorly.

[GSilverman]

Agreed Staten. What if the outstanding balance on their $650M Wells line now exceeds the value of their Book of Business? The attrition rate due to normal maturity + old nopo + new nopo + payoffs + negotiated settlements has been huge. Maybe just maybe the company is or is becoming worthless. Past projected market cap is meaningless. Current book value is meaningful.