GREY:FTPLF - Post by User
Comment by
nkbourbakion May 21, 2019 9:00pm
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Post# 29761889
RE:RE:RE:RE:RE:This is the crucial part!
RE:RE:RE:RE:RE:This is the crucial part!Contrarian333 wrote: rather than redeemed - perhaps the converts will be "bid" for............
Anything is possible, but nothing has transpired to suggest this eventuality. Why would institutional deb holders accept anything less than par at this point? They showed in the fall that their support wouldn't come for free. The equity will have to be a zero before they take a haircut. That said, with the common down to $0.60 today it's clear the market thinks the equity is toast. On the CC they said the deal with the lenders would free up about $16-17m of cash per year that would otherwise have gone to debt payment. This matches the principal and interest payments on the IQ debt alone. I expect that the "more permanent" balance sheet repair that's being alluded to has only to do with the IQ loan. They have an abnormally supportive lender, and they want to be out of this situation where they're constantly asking for deferrals. So they'll draw something up to officially kick the can down the road. It's interesting that the $7m Quebec govt grant toward the bio-project is dependent on a definitive IQ arrangement. I wonder if they're also working on some additional funding to help finance the bioproducts demo plant, either with IQ or 3rd party or both. The most pressing concern is their pressing need for cash. Their murkiness on the conference call around this issue does not inspire confidence. A few million of restricted cash will become available in June, but they're really running on gas.