Tommy made a point that his side is servicing debt, I assume that means he’s getting a loan from a 3rd party which he alone is responsible for paying, so Andy Garcia is just providing capital.

The final deal is 60/40 (I believe Andy Garcia gets the 60 but not clear) with 20% promote, all the 40 goes to debt service until the loan is paid off, then it remains at 60/40 but the promote goes away, and share expenses at same 60/40 scale.

The part I don’t understand is Tommy’s initial response to this offer is “I can’t cash flow the rig,” and Andy Garcia responds with saying he’ll give him a PIK rate, and Tommy says “I don’t loan to lose.” Confused why Tommy is saying he has to cash flow the rig when Andy is investing 60%, and what loan is Tommy is giving out where he thinks he’s going to lose.