by Defianttruth 14 Replies latest jw friends

  • Defianttruth

    I keep seeing references to the 750 million in sales of the NYC properties and confusion around the apparent cash flow problems of the WTBT society. Here's the reality. If they went, to a bank and asked for loans for the buildings here's what a bank would say, "Absolutely." Are you kidding me? I would loan money on a building in good shape in that part of the world. It is better than cash. I would loan the money and hope the loan failed.

    Think of how easy it would be to say brothers we need some money for this year how about we borrow 50 million against the buildings to help with the work. We still have a mortgage on the building, but we can use equity to advance the Kingdom Interest. Besides, Jehovah is behind us you know he won't let us be in need. A few of those actions later and they could have been in serious trouble. In theory they could be losing money in this sell if a lot of debt is attached to the loans. If one thinks God is behind every decision he or she makes, it could make for some ballsy decisions.

  • Vidiot

    Defianttruth - "If one thinks God is behind every decision he or she makes, it could make for some ballsy decisions."

    I think you meant to say, "If one thinks God is behind every decision he or she makes, it could make for some stupid-ass decisions."

  • Crazyguy
    Yeah something wierd going on, they seem to have become a real estate investment firm so if that's the case why didn't they borrow money against some of the property in new York to use to convert some of these properties into condos or whatever that would get them the most return on investment, instead of just selling them.
  • freemindfade

    they can't barrow money against the buildings, the money buildings are what is left in BK and those are all in the middle of sales. From my understanding they have been sold just the time to take care of everything is long, the properties should be handed over in 17' to the buyers.

    The rumor of their credit downgrade and bad investing could be very much true and they have lost financial flexibility.

  • elderINewton

    FYI - I have yet to personally see a credit downgrade. They are a customer of the company I work for and the D&B indicated "good" credit. Funniest part to me was when they said they are in the "printing & construction" business, religion was not listed.

    The likely issue is that you can't get a mortgage on contaminated property. Banks don't lend on buildings with issues like that. It might have caught them off guard so the cash grab could be to maintain a float rather than have a bank provide the service.

    They will need a sizeable float to maintain construction of Wakhill.

    I have also seen a fair number of special pioneers shipped out for assignment via airplane, so they are not acting like its a money issue with the ministry. Only construction, it further clouds the whole issue.

  • Vidiot

    elderNewton - "Funniest part to me was when they said they are in the 'printing & construction' business, religion was not listed."

    A rare and refreshing moment of honesty.

    Who knew? :smirk:

  • Crazyguy

    D&B doesn't list them as a religion it's printing and real-estate holy cow that's Huge!

    Elder Newton, what's your thought on why the real estate building shut down, one would think the money grab would have been enough for a float?

  • Saintbertholdt

    Perhaps the answer might be cash flow. Wallkill could be costing them a lot more than they anticipated. They might already have taken loans on some of their their property's and now the banks are getting skittish about lending them more. Also because they have invested their past cash surpluses into long term funds it might exacerbate a possible cash flow problem.

    Something is off here.

    Could an investment or investment partner have caused a big loss for the beloved corporation?

  • BluesBrother

    Could not help but notice that the horrible little video, in which Sophia is moved to place her ice-cream money in the Kingdom Hall box, has been bumped up on the JWBroadcasting site.

    It is now next to AM3 as a "Latest Video"......Man, they must be desperate!

  • elderINewton

    Crazyguy - the D&B actually does list them as a religion, but in the credit request documents Bethel identifies themselves as in the printing & construction business. So its Bethel identification, not D&B, so its quite ironic.

    As for the float, if they are being required to use outside contractors, then they are needing quick payment turnaround. If vendors are jumpy they might also be requiring large deposits or bonds as well.

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