Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... (197917) | |
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(197923) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by rionOne on Thu Jun 10 07:01:15 2010, in response to Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by Gold_12th on Thu Jun 10 04:03:40 2010. Eeeeeek! |
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(197933) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by CapitalCruiser on Thu Jun 10 09:34:17 2010, in response to Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by Gold_12th on Thu Jun 10 04:03:40 2010. I stand by my call, this sounds so similar to AM General! |
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(197934) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by The Flxible Neofan on Thu Jun 10 09:36:31 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by rionOne on Thu Jun 10 07:01:15 2010. Indeed! This does NOT look good :(. I hope this doesn't end up being another "Millenium". |
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(197935) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by AMoreira81 on Thu Jun 10 09:37:07 2010, in response to Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by Gold_12th on Thu Jun 10 04:03:40 2010. Now I have to wonder if the MTA will ever get more than the five buses it has; I don't think so, and the contract should be canceled at the next board meeting. |
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(197936) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by RTS_Book on Thu Jun 10 09:38:59 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by The Flxible Neofan on Thu Jun 10 09:36:31 2010. Or, for that matter, another GAC/Flxible. Thank you, Cruise Moss! |
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(197937) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by AMoreira81 on Thu Jun 10 09:46:57 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by CapitalCruiser on Thu Jun 10 09:34:17 2010. What was the AM General situation, for those too young? |
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(197938) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by AMoreira81 on Thu Jun 10 09:47:56 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by RTS_Book on Thu Jun 10 09:38:59 2010. Who owns the assets of General Automotive now, out of curiosity? I know that GAC ended up in bankruptcy the year after Flxible closed. |
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(197957) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by Gold_12th on Thu Jun 10 13:34:12 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by The Flxible Neofan on Thu Jun 10 09:36:31 2010. They already have the ingredients to make a perfect storm.Down the road... Chapter 11? |
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(197972) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by RailBus63 on Thu Jun 10 14:55:10 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by The Flxible Neofan on Thu Jun 10 09:36:31 2010. At least Millennium had a proven design. |
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(197975) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by RTS_Book on Thu Jun 10 15:01:58 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by AMoreira81 on Thu Jun 10 09:47:56 2010. I don't know. |
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(197977) | |
More Inside look DesignLine USA troubles: Acquisition to Jasper |
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Posted by Gold_12th on Thu Jun 10 15:08:16 2010, in response to Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by Gold_12th on Thu Jun 10 04:03:40 2010. Did more investigating, previous company involved with DesignLine.....____________________________________________________________________________________________________ DesignLine was merged to Acquisition by Jasper Ventures Inc. As of October 5, 2009, Jasper Ventures Inc., Prior To Reverse Merger With DesignLine International Corporation was acquired by DesignLine International Holdings, LLC, in a reverse merger transaction. Jasper Ventures Inc. engages in the acquisition, exploration, and development of natural resource properties. It owns interest in the River property consisting of 19 cells in one contiguous block located in Central Quebec. The company was founded in 2006 and is based in Moose Jaw, Canada. Address: 69 Ross Street West Suite 638 Moose Jaw, SK S6H 2M0 Canada Tel: 416-981-7838 Founded in 2006 Their CEO: Brad C. Glosson, read his bio here: http://investing.businessweek.com/research/stocks/private/person.asp?personId=52817441 CFO: William L. Cave from: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=40221872 ____________________________________________________________________________________________________ They also formed a Incorporated in Nevada. More about DesignLine's profile in SEC file From 8K Read more: Click here |
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(197985) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by JAzumah on Thu Jun 10 16:27:03 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by Gold_12th on Thu Jun 10 13:34:12 2010. I don't understand...the MTA contract is collateral. Why don't they just use it to get funding? Yes, it IS that easy. |
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(197999) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by Brightonr68 on Thu Jun 10 17:40:31 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by JAzumah on Thu Jun 10 16:27:03 2010. They have already used it to get funding. That is what collateral means |
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(198012) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by JAzumah on Thu Jun 10 18:24:00 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by Brightonr68 on Thu Jun 10 17:40:31 2010. Doesn't look so. You need $40M in cash minimum to build $50M in buses. The gross profit is usually 30%, with the warranty reserves and non-manufacturing costs reducing that number down to 5-10%.In theory, if I wanted to bail them out, I could go to a contract funder and get 70-80% of the value of those contracts right now. I would have to pay 8-12% interest, but since the build time is less than one year, it isn't a game breaker. You buy out all of the investors and you assign the cash flow of the contract to the financing company. The MTA is large enough to be acceptable to most funders and its credit rating would probably yield a 9% interest rates. The equipment component would be satisfied by a lien on the finished goods. It seems to me that no one at DesignLine knows how to finance the company. A reverse merger is a technique used to raise cash through the IPO process. They picked a bad time to try and IPO as the appetite isn't there in the market. In addition, the public reporting requirements and compliance is a royal pain in the rump. The only way I am picking this up is because I was on a quest to get financing of size for a long time and it is only recently that I have figured out how to do it. You run into all kinds of distractions and get money quick schemes that are dangled by hucksters playing on your greed or need. I'm still mad about the $350 I lost in the process. The vendor issues are going to be a big problem. Quality issues are typical for new manufacturers trying to build things quickly. As Orion knows, it is better to be late and throw in free buses than to toss buses out when they aren't quite ready. However, one set of vendor problems will drive up the cost for all the other vendors as they hedge. Remember, most vendors factor and get an advance of 80-90% on DesignLine's cash. If DesignLine takes too long to pay (more than 2-3 months), the 10-20% reserve held is gone. After another month, the vendor now OWES the factor the advance they receive for that part! If I had access to what I know and have now, I would have bought Millennium in August 2008. While $1M+ bus service contracts aren't easy to get right now, a three bus contract would meet the minimum guidelines of most contract finance companies. Since they built buses that physically work, quality control means tightening things up. That isn't the worst problem in the world. |
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(198091) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by GOLD_12th on Fri Jun 11 00:48:38 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by AMoreira81 on Thu Jun 10 09:46:57 2010. This may explain why? ....Website:http://www.omot.org/roster/buses/amg.html |
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(198092) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by GOLD_12th on Fri Jun 11 00:51:15 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by AMoreira81 on Thu Jun 10 09:37:07 2010. I don't think so, and the contract should be canceled at the next board meeting.I agree. If MTA have not even realized this mess or even read this bus forum that I post then its going to get really nasty in the future. |
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(198109) | |
Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc... |
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Posted by RailBus63 on Fri Jun 11 09:04:20 2010, in response to Re: Inside look DesignLine USA troubles: lawsuits, stock market, borrow $, debt, etc..., posted by GOLD_12th on Fri Jun 11 00:48:38 2010. AM General seemed to be getting its act together by 1977-78. Boston’s MBTA had massive problems with their 1976 order (40-footers 9200-9287, 35-footers 9700-9739) and many of these buses were out of service after just a few years, but the 1978 order (40-footers #9000-9049 and 9300-9339) were much more reliable and a number of those buses made it to 12 years before being replaced by TMC RTS’s. |
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