Originally Posted by
No Idea Either
I personally have no idea about anything corporate, but wouldn’t this ‘cross guarantee’ deed be the vehicle for PAG to take the part ownership of the parent company. But it sounds risky as it appears, how I see it, that’s this deed/vehicle may also leave the entire show open to all the debt...........risky business if that’s correct.
No, deeds of cross guarantee are generally used for related entities, not funding deals. The PAG funding was covered by Rex issuing first ranking senior secured convertible notes to PAG. Convertible notes are basically a debt covenant that says if the debt isn't repaid it will be satisfied by being converted into shares.