There can also be fine print booby traps in such arrangements. Like for example price of oil drops and debt is to be repaid by future offtake but in the meanwhile is backed by notional asset value and after a time of low commodity price lender claims the asset value now is not sufficient to cover debt triggering 100% debt repayment (requiring massive CR) or equity in lieu of repayment (massive dilution). Gets very complex. If that s..t starts then I look for the exit ...
I made it to the exit just before EDF did that to PDN with upfront loan linked to a future offtake agreement backed by mine value.
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