In July 2012, Third Eye lent around $40 million to Aemetis, Inc (NASDAQ:AMTX) by means of loans, notes and a revolving credit facility. The "stated" interest rates have been as high as 17%, but due to a creative variety of fees, the real rate of interest has approached 100% per year.
Aemetis clearly had no ability to repay these debts. In fact, it could not ever even service the interest alone. Within less than 6 months, the company was already in default.
As a result, in October of 2012, Aemetis and Third Eye entered into Waiver and Amendment #1. This extended the maturity of the obligations to July 2014 and increased the lending amounts by $6 million.
But... the $6 million...
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