03-27-2008, 05:52 PM
dear idrees
can u tell me if a company sets up a SPE than it can do financing through SPE but wat wud be the benefit for the company obtaining finance throug the SPE but it cant show that on its own balance sheet.
if it obtains loan from SPE than it has to show that on its balance sheet that the company has acquired financing from related party or associated so how can its leverage or D/E ratio improves
regards
can u tell me if a company sets up a SPE than it can do financing through SPE but wat wud be the benefit for the company obtaining finance throug the SPE but it cant show that on its own balance sheet.
if it obtains loan from SPE than it has to show that on its balance sheet that the company has acquired financing from related party or associated so how can its leverage or D/E ratio improves
regards