GREY:LSTMF - Post by User
Comment by
bushhog1on Jun 29, 2016 7:30am
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Post# 25007561
RE:RE:LTS LOC was cut $900M in one year
RE:RE:LTS LOC was cut $900M in one year Thanks, but what I am suggesting is that LTS wouldn't have had a Debt problem
if the EBITDA was not breached. This dilemma was caused because of LTS
deliberately under producing in this low oil prices environment.
They can simply go back to producing more oil, thus rectiying the EBITDA problem. Also from July1, the Ebitda ratio will be more favourable to LTS, increasing from 3.75 to 4.25 basis.
So its not about paying their Debt but its about breaching their EBITDA covenant.
I think the Banks should have been more understanding and lenient and not cut so harshly in this crises.
However the Bondholders have much more to lose and will be more willing to compromise.
PS. Oil is recovering and LTS will start inreasing their production again. A Lendor
might be found who might be willing to wave this temporary breach.
Only my opinion.