Jun. 12 at 10:02 AM
$FBIO $FBIOP The requirement for
$25 million in cash under Section 9.05 applies to specific investments such as loans and capital contributions to subsidiaries, not to the dividend payments on preferred stock FBIOP mentioned in Section 9.06(g). However, dividends for Fortress subsidiaries are limited under this
$25M requirement (perhaps you misunderstood here), but that wouldn't have been on option anyway. Therefore, as long as no "Event of Default" (read P.70) exists, Fortress can pay dividends on its existing preferred stock under the terms of Section 9.06(g) without meeting the
$25M cash requirement for investments.
Regarding the requirement for
$25 million for investments Fortress had cash and cash equivalents of
$91.3 million (all subsidiaries), of which
$19.5 million relates to Fortress and private subsidiaries primarily funded by Fortress in Q1. This before the Checkpoint sale which adds
$28M.
