04-16-2009, 02:51 PM
I’m very sorry I missed what sounded like a very successful meeting yesterday, but work takes me off island and I am not able to be here all the time. I am grateful for all the work our BOD is putting into the paving project and all other matters.
Jeff, thank you for addressing the rumors and bond issues yesterday and thank you for the clarification and for your invitation for further questions. I apologize in advance for what might seem to be obvious questions here but I don’t have a background in finance and am trying to get my head around some of the points you made. Perhaps most of these will be answered when you have all the numbers on May 5 and if so I look forward to reading the minutes.
10) “ We now have a consideration that would allow us to literally sell back a part of the bond contract (we may never use) for a minimum of $500,000.”
Does this mean we could sell back part of the bond if in the end it is cheaper to do so than if we keep it all and continue to pay interest for years until we collect enough road fees to pay it all back?
11) The original Broker of the Bond has suggested that we add an additional $1,000,000 to the existing trust (completion account) with a 125% ratio instead of 110%. Our attorney has indicated that this is only conditional and has nothing to do with the terms of the contract.
Could you please explain this in layman’s terms and how it affects our debt and obligations? Are we considering borrowing another $1,000,0000?
13) If we returned funds at this point our estimated penalty would be $3.500,0000. Is that a better way to end the controversy? It’s the will of the collective that matters and should be and will be honored.
How does this relate to the $500,000 fee above? Does this mean if we return funds we will be paying a fee and penalty totaling $4,000,000? Won’t the controversy be settled once it becomes clear whether it costs us more in the end to keep the bond money or return funds?
16) Bond is collateralized by our account receivables only.
Are there penalties if we don’t collect enough road fees to pay the bond back by a specific date?
Jeff, thank you for addressing the rumors and bond issues yesterday and thank you for the clarification and for your invitation for further questions. I apologize in advance for what might seem to be obvious questions here but I don’t have a background in finance and am trying to get my head around some of the points you made. Perhaps most of these will be answered when you have all the numbers on May 5 and if so I look forward to reading the minutes.
10) “ We now have a consideration that would allow us to literally sell back a part of the bond contract (we may never use) for a minimum of $500,000.”
Does this mean we could sell back part of the bond if in the end it is cheaper to do so than if we keep it all and continue to pay interest for years until we collect enough road fees to pay it all back?
11) The original Broker of the Bond has suggested that we add an additional $1,000,000 to the existing trust (completion account) with a 125% ratio instead of 110%. Our attorney has indicated that this is only conditional and has nothing to do with the terms of the contract.
Could you please explain this in layman’s terms and how it affects our debt and obligations? Are we considering borrowing another $1,000,0000?
13) If we returned funds at this point our estimated penalty would be $3.500,0000. Is that a better way to end the controversy? It’s the will of the collective that matters and should be and will be honored.
How does this relate to the $500,000 fee above? Does this mean if we return funds we will be paying a fee and penalty totaling $4,000,000? Won’t the controversy be settled once it becomes clear whether it costs us more in the end to keep the bond money or return funds?
16) Bond is collateralized by our account receivables only.
Are there penalties if we don’t collect enough road fees to pay the bond back by a specific date?