A 7% note payable for $40 million to a bank was also issued in 2023, due in May 2025.

In December 2024, Delta obtained an extension on $20 million of the 7% note payable to the bank with a new maturity date in 2026. A contractual arrangement was also made with one of the shareholders to purchase an additional $20 million in shares in April 2025, with the funds being used to pay the remaining $20 million of the 7% bank note in May 2025.

Find is it's a substantial or not? and comment on debt to equity and Times interest earned ( formula )

Answer rating: 100% (QA)

The issuance of a 40 million note payable to a bank with a 7 interest rate is a substantial debt for ... View the full answer