Ann: Preliminary Final Report, page-7

Colinchi,

Common practice where you have two companies with related ownership. If one is the Creditor and elects to give extended payment terms to the customer it is the same as an interest free loan. It's all about sub contracting certain parts of the design and construction work out to a company that specializes in this type of work. EWC operates power and gas plants, certainly not all of the the boots on the ground construction work . If Slipform is happy to give extended payment terms this is a clear winner for EWC. This has been seen as a bonus by the various lenders to EWC. I wish my business had terms as generous as Slipform are extending to EWC. It's all about cash flow. Even though your trade creditor is on your books as a long term liability, it greatly assists your cash flow