CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:RE:RE:RE:RE:Easy Question Folks?

[Kherson]

pierrelebel wrote:
"distributable cash was a negative $15 million which therefore resulted in an increase in the overall debt!"  I do not know what business scholl you went to but I suggest you contact them and ask for a refund.

To arrive at such conclusion (increase in debt) shows a total lack of understanding of basic accounting.  A change in cash flow (and distributable cash) could be the result of a million things including change in accounts receivable, accounts payable, build up in inventory, etc....

Instead of doing "guess work" why don't you wait for the information to be publicly released?

Pierre, I would suggest that you read the publicly released Canexus Second Quarter Financials under the Liquidity heading on page 16.
 Relevant information:
"Operating activities for the three months ending June 30, 2015 resulted in a net use of cash as opposed to the generation of operating cash flow..."
"Net borrowings from the Extendible Revolving Credit Facility more than offset cash dividends paid resulting in net cash being generated from financing activities..."
"Net cash generated from financing activities for the three and six months ending June 30th was used to fund operations, the payment of cash dividends and to partially fund expenditures..."
Results:
Increased debt!
Kherson