Post by
pennydredful on Jan 21, 2015 5:20pm
Debenture Holders will fair much better if they vote NO
To company's latest proposal even if the bank puts them in receivership. No allowance required for common shareholders , and no 9million $$ ++ bonus shares to Toronto based hedge funds . In December Spyglass sold a non operated 50% in their 2500 barrel a day Dixonville field for 100M valuing the whole property at 200M valuing operatorship at zero . Note this transaction occured with no hedges in place. Arcan,s comparable field produced 3924 barrels in third Q or 157% more than the Dixonville field resulting in a proforma value of 157% times 200M is 314M Valuing their signicant hedges at ZERO . The 314 M exceeds their net debt of 307.5M based on the lastest published results ,meaning debentures debt is covered 100 cents on the dollar . Admittantly there could be a minor shorfall re severance and transaction costs , but will be far in excess of the current realizable price of 30 cents on the dollar which may soon be even less once the more than a billion shares start trading. ONLY A FOOL WOULD VOTE FOR YES TO THIS PROPOSAL WHILE A FOOL'S WINGMAN WOULD NOT VOTE AT ALL .