Restructuring Just my two cents from having worked around the edges of the coal finance biz.
1. Restructuring the debt will not make Cline's coal more saleable. The market determines that and all the majors have stated their is no market for a new entrant with marginal high vol coal.
2. In order to get Cline up and running, it will cost $50-$75MM. The rail link still needs to built at a cost of $20MM+, plus equipment payments, plus working capital. Still does not solve the sale issue.
3. While the bond holders are pregnant with $50MM of debt, JMO, they will not double down given the lack of sales.
4. A likelihood would be the bond holders, which have probably already done a valuation, will advance some funds and force a sale. Obviously, at a fire sale price.
5. Buyers? Great question. In the near term, this could be a good steam coal, but not sure it can be mined profitably to sell into that market.
6. Saw one comment that the debt is only $2.5MM, yes the interest payment, but they are in default, meaning it all comes due. And yes, there is a cure period where the bond holders can't take control.
7. I am sure Cline has planned for this event and have a strategy. But any option, most likely won't be good for shareholders.