GREY:LSTMF - Post by User
Post by
bushhog1on Jun 25, 2016 1:20pm
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Post# 24998411
LTS can payoff overdrawn LOC from regular business.
LTS can payoff overdrawn LOC from regular business.LTS had posponed its regular Interest payment from June 15 to July 15, 2016 after the
Banks had cut their LOC by an unexpected huge amount of $300M leaving
LTS with an overdrawn amount of $120M
.
I believe LTS will try to pay off this amount by the end of June 2016 from their cash
position, before addressing the Interest payment
Calculations
1) In April 2016 LTS had a cash balance of $7M ( shown in Q1)
2) During April LTS withdrew $28M from LOC before Banks cut the Limits.
( Q1 LOC was $343M and at the cut announcement they had $371M LOC Debt)
3) Interest of $32M us ($41M cad) deferred to July 2015
4) In 2015 LTS paid off $87M LOC Debt from Cash flow. In 2016 if LTS can accomplish
similar feat with oil prices higher and costs lower caused by downsizing.
In mid year LTS can then have extra cash flow of $44
This total will take care of the $120M LOC overdraft. If any fall short they can take out from their
cash flow in July, because the cure period ends on 28 th July 2016.
The $41M interest payment can be renegotiated with the Bondholders.
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Disclaimer
Before the Sharks attack, no the Shorts attack
Its only my opinion, no only my imagination.
For your entertainment only.