Lightstream Resources Ltd. LSTMF

RE:Lightstream still negotiating with Lenders

[orlandofl]

bushhog1 wrote: Are we going to see a similar Agreement like NIKO?

NIKO Management done a great job to keep this Company alive and 
not having to sell.
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"CALGARY, AB--(Marketwired - June 28, 2016) - Niko Resources Ltd

CHAIRMAN'S MESSAGE TO THE SHAREHOLDERS

The Company continues to pursue a strategic plan to maintain its core assets for a period of time with the goal of enhancing the value of such assets for the benefit of the Company's stakeholders.

To pursue this strategic plan, the Company requires concessions from its key stakeholders to significantly reduce the cash outflows to these stakeholders. The key terms of proposed amendments to the agreements governing the Company's term loan facilities and convertible notes have been negotiated with the relevant parties and the Company has executed agreements with 100% of its senior lenders in support of the proposed amendments to these agreements. The Company has also solicited and received consents from the requisite amount of noteholders to proceed with the proposed amendments to the indenture governing the convertible notes. As soon as practicable, the Company expects to enter into an amendment to the term loan facilities agreement, formally amend the indenture governing the convertible notes, and take such other steps as are necessary to give effect to the strategic plan. The implementation of the strategic plan remains subject to certain approvals, including the final approval of the Company's board of directors and the Toronto Stock Exchange. If the amendments become effective, the Company would not be required to make interest payments (including interest then owing) under the facilities agreement or the indenture during the term of the amendments, other than in connection with waterfall distributions (as defined in the proposed amendments), and would no longer be in default of the amended facilities agreement or indenture."

I'd like to see them raise $200 - $500M at a lower interest rate than what they are paying.  Negotiate all other bond holder rates to a lower interest rate - around 5 to 6%.

How do you say - issue options for 100M shares to be split by bond holders based on holdings and whether bonds are secured or not at a pretty low price so that they can make money on stock and continue to hold bonds and help with companies cash flow and to allow eventual repayment of bonds.  I hope management can put together a deal - restructuring debt would help - a 100M share dilution at this price won't hurt that much - we just need to see them survive and then improve their cash position.