GREY:CLLZF - Post by User
Post by
strzelinon May 16, 2012 1:19am
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Post# 19913975
Disappointing results
Disappointing results I posted before about Connacher selling their bitumen below Total Cost. Their cash on hand drop in Q1 from $112 to $49 million.
Previous and just released results show CLL cash burning rate of ~ $25 million per quoter. In last two years they were managing to stay above the water by selling assets. This can not continue forever. The crunch is coming fast.
In 2 months they will have to come up with $141.4 million.
$102.4 million for convertible (including interest) --- by June 30.
$39 million interest on $900 million debt --- by July 31
Before end of June their cash on hand may drop to $15 millions. They may have a serious problem to come up with $141 million as their $100 million (at 6.5 %) credit line facility (expendable to $125 M) has several covenants which CLL may have a problem to be compliance with if the bitumen price continue to drop.