Rob Croson
Elio Addict
I thought that the private placement investors were buying stock. They don't have to be paid back. The only other major creditors are Stuart Lichter for a few million, IAV for $1.3m, CH Capital for $10m, and Racer Trust for $23m. They don't have to start paying the lease on the factory until August 1, 2016. Even if they paid all of that immediately, they'd still have one hell of a chunk of cash if they went for $200m from the DoE.That my friend are the key points to consider in determining whether or not EM is pre-loan and post-loan financially viable by the DOE. EM currently has no income stream in and is operating only on high interest loan venture capital.
I speculate that if the long shot ATVM Loan was/is approved that much of that funding source would go to repay the venture capital investors with remaining funds earmarked for production needs.
One of the good things they did is to not take out a lot of loans. They owe money, but it's not to a bunch of venture capital investors. Paul Elio still owns the vast majority of the company, both personally and through his company. Most of the money to pay expenses cam from Stuart Lichter and the reservations.