yes I've seen a lot of junk debt deals financed by shadow...

yes I've seen a lot of junk debt deals financed by shadow finance non banks out of New York in the resources space back in 2011-14 - in the cases I saw it was never a good result for shareholders because they suppress sp with a whole slew of algo trading for whilever they are in the stock

i presume the aim for them is to ultimately force repeat lending at terms but dont know that for sure. probably use their shareholdings to play a trading range both long and short rather than ever letting a stock breakout

as a result I'd pay a lot of attention to who does the lending. you really want it to be from a credible investment or commercial bank though i suppose even that isnt foolproof