Lightstream Resources Ltd. LSTMF

LTS LOC was cut $900M in one year

[bushhog1]

"At March 31, 2015, the Company had a secured extendible revolving credit facility ("credit facility") with a syndicate of lenders in the amount of $1.15 billion and a maturity date of June 2, 2017. The credit facility has covenants with respect to secured and total debt to EBITDA levels adjusted for non-cash items and a total capitalization covenant"

https://www.lightstreamresources.com/files/pdf/investor-relations/2014/Q1_2015_Report.pdf
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In one year their LOC limit dropped $900M because of the EBITDA Ratio.
This Company had no problem in making their Debt payments so far. This recent  $300M deep  cut on their LOC Limit by only one bank was unexpected and caused
this sudden $120M overdrawn amount
They said they have several options to rectify it, so give them a chance.

Calling for Bankruptcy is premature.

OIL and Canadian Dollar is slowly going back ... be patient.

Remember too that LTS is a well run Company and this LOC Debt was due
till June 2017 but this deep cut was not expected. Their other Debts are due till 2019.

Only my opinion

[when2buy]

This post has been removed in accordance with Community Policy

[bushhog1]

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

[Sonofmshade]

Exactly! Unfortunately we do not know what is transpiring behind closed doors. On the surface this should be a fairly simple process but the million dollar question is - How deep is the corrupt criminal intent of those trying to break this company? Based on metrics, common sense, market trends etc....there is zero rational or justification for this company and its shareholders to be held hostage

[highrider2]

This post has been removed in accordance with Community Policy

[PROtrading]

Poor multiaslias brokerage paid bashing clown!  LTS's misfortunes are 100% relating to oil commodity prices.  They underestimated the street and need to chop a leg off. But the rest of the body is still going to run, not as fast as it could with a whole body... Now, it's possible the guys feeding the body (the lenders) won't allow a leg to be chopped off.  We have 30

[Sonofmshade]

The company was doing everything correctly since this just before this downturn hit I realize I accidently added the extra "this" but if you were not such an idi*t you could have figured it out. They have done things right since shortly before the down turn starting with the big asset sale and every move since then. 5 years ago maybe not but I don't care about that. Incidentally I

[bushhog1]

Good posts Sonfs, I agreed because I also think they did everything right. A few examples 1) Cut Dividends  early - save a bundle for the Company. 2) Cut Productions - why produce and sell at a loss. 3) Revalued Assets down- writeoffs - reduced Deferred IncomeTaxes by about $270M 4)Debts swaps - reduced Debts by $125M + reduced more debts from cash Flow  by another $87M 5) Lots of