Restructuring?

So what exactly was in the EQUITY CAPITAL CONTRIBUTION AGREEMENT that was signed nearly three months ago - and we anxiously await the outcome? The SkunK doesn't know. However, lets see what we can gleam from the tidbits we have.

Restructuring

I suspect that the GE number crunchers said GreenShift needed to do certain things to GERS structure before they received the GE/CBE investment. These are some things I suspect could be happening:

1. Reduce Overhead. GreenShift Corporation had 124 full-time employees as of March 31, 2008. With the 26 or so at NextDiesel, that makes 150 employees. With even a $40,000 average cost per employee that runs $6M/year. You need a specialized crew to supervise the construction of, and pull higher echelon maintenance on the COES. You need a NextDiesel Crew when the market dictates you can operate at a profit. You need administrative, executive/sales support. The SkunK thinks you can operate the core of this company with less than 50 employees.

2. Downsize/Contract Out. Greenshift has acknowledged for months that 3rd party Biodiesel sales have all but stopped. With 75% of Biodiesel plants now idle, and the credit markets crippled, biodiesel building is frozen. Why build when you can buy a biodiesel plant for pennies on the dollar at auction? Why carry biodiesel builders on the roles when they are idle? Is GS Design - gone? If not - (and nobody asked this question) why did we contract out the significant portion of the Riga construction to local companies? SkunK surmises that the Ohio GS Design facilities may be going or gone. Anything that does not directly relate to the COES or Biodiesel I think has been looked at carefully as to whether it is forwarding or dragging on the critical COES mission.

3. Cash Flow. This is a real stinker. In order to do a deal you have to show that cash flow will cover costs at some point. With little to no margins in the biodiesel industry; with the NextDiesel plant slowed or idled; you have to take a step into the future to see the cash flow. You have to project market conditions where the biodiesel industry makes money.

Will GE make this Good Idea come to Light??

We should know shortly,

This is speculation based on my opinion. I suspect 99.9% of you will have (at the very least) a slightly different opinion. I suspect 99.9% of you understand and are secure enough to handle that. lol

Good Luck to all investors.
SkunK