UPDATE: State meets obligation to NYRA; Legislature OK's advance

[pmacdaddy]

Originally Posted by pointman

NYRA is different because they are a State entity. Unlike other businesses, I doubt NYRA can go just to a bank and take out a $17 million loan.

Nick,

I believe NYRA is now a Not-for-Profit organization, no longer a state entity. Accrodingly, they can certianly access working capital given collateral and cash flow. However, the current state of limbo leaves them with much on neither...

[pointman]

Originally Posted by pmacdaddy

Nick,

I believe NYRA is now a Not-for-Profit organization, no longer a state entity. Accrodingly, they can certianly access working capital given collateral and cash flow. However, the current state of limbo leaves them with much on neither...

I am not positive, I believe they are still a municipal not for profit corporation. And yes, when they deeded $1 billion worth of land to NY State they certainly compromised their collateral, not to mention having just come out of bancruptcy does not help either. Regardless, as a not for profit there is no room in the budget for interest. I still don't know where the money to pay that is supposed to come from.

[pmacdaddy]

Originally Posted by pointman

Regardless, as a not for profit there is no room in the budget for interest. I still don't know where the money to pay that is supposed to come from.

This is survival, not a balanced budget excercise. Not to say things are sustainable without VLT's coming to fruition or some other changes to the current situation.

[Cannon Shell]

Originally Posted by pmacdaddy

Nick,

I believe NYRA is now a Not-for-Profit organization, no longer a state entity. Accrodingly, they can certianly access working capital given collateral and cash flow. However, the current state of limbo leaves them with much on neither...

What collateral do they have? The state owns the land. They arent getting paid by NYCOTB (owned by the state) which is chapter 11 and are required by law to continue to send them the signal. There is a big chunk of the cashflow. Who is going to risk any money in this scenario? Sheikh Mo?

[pmacdaddy]

Originally Posted by Cannon Shell

What collateral do they have? The state owns the land. They arent getting paid by NYCOTB (owned by the state) which is chapter 11 and are required by law to continue to send them the signal. There is a big chunk of the cashflow. Who is going to risk any money in this scenario? Sheikh Mo?

That's what I am saying. The current situation leaves them without collateral or cash flow. Even though they are technically "allowed" to borrow as a NFP.