Friday, July 29, 2005

Hi Ho! Hi Ho!

It's off to clean up a balance sheet I go.

Still dealing with this small metal fabricator. Have to buy out the bank, get the BDC to subordinate to us, service tax arrears and deal with some claims and judgments.

Given the tenuous situation, it means that we will want 100% control of the cash flow - both payables and receivables. We want to make sure that our cash is being used as it should be and not ending up in the owner's we are looking to install a new controller in the company. While the company is going to be resistant at first, it will help them in the long run.

Initially the company will still be tight for cash, but its affairs will be in order. The government has agreed to stick with 15K/month in payments for the next 3 months. As long as these guys bring in the new business, they will grow. it may require over advancing, but I can live with it.

The company owners are good guys, very simple and not into paper work


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