GREY:NKRSF - Post by User
Post by
ziboon Oct 27, 2018 11:57am
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Post# 28882190
Options
OptionsI think we're down to Three possible outcomes, since I'm fairly certain re-financing Niko is off the table.
(1) RIL/BP have served default notice and are going to make a low ball offer.
(2) Cortes (lender"s) are going to make an offer to buy out Niko's share of D-6.
(3) Niko loses D-6 through default which I doubt will happen.
If RIL/BP make an offer for 268 mil. According to the waterfall agreement proceeds would be;
Cortes 230 mill. Noteholder's 30 mill. Niko 8 mill.
The biggest loser would be Cortes since they would lose about 220 mill.
If Cortes is not prepared to write off that kind of a loss and they offered Niko 15 mill and the noteholder's 35 mill to buy out D-6.
That would be a better deal for Niko & Noteholder's and Cortes would be able to have 100% control of D-6, they are owed 450 mill + 50 mill buy out would be 500 mill + 200 mill development cost = 700 Mill total investment which is 50 mill cheaper than financing Niko and entitled to 100 % of revenue from D-6.
If part of this agreement was that Cortes and the Note Holder's release Niko from their debt and leave Niko debt free this would be a good outcome for Niko and shareholder's would vote in favour of this deal IMO.