Please tell me if this analysis is simplistic:

Somebody just lent LBE $32 million. LBE's current market value is about $16 million. LBE owes the Chinese some money (about $15 million?) Total debt: approximately $47 million. If you were the lender considering whether or not to loan LBE the $32 million, would you not want to be reasonably assured that the assets are worth at least $47 million? In fact, you would want to be reasonably assured that it was worth considerably more than that, because you would not want to have to try to recover your debt by seizing the assets and having to try to sell them quickly to recover your money.

Following this reasoning, I suggest that LBE is worth significantly more than the current 21 cents per share.

If I am wrong, please tell me where my reasoning falls apart.

Thanks.

-- R.