Post by
rad10 on Nov 16, 2017 9:40am
fairly confident an agreement has NOT been reached.........
from sedar 2 days ago.............
The commencement of the CBCA proceedings resulted in an event of default under the Concordia International Credit Agreement, the indenture governing the Company's 9.00% senior secured notes and the cross currency swap agreement, which defaults are subject to the stay of proceedings granted by the Court. Future liquidity and operations of the Company are dependent on the ability of the Company to restructure its debt obligations and to generate sufficient operating cash flows to fund its on-going operations. If the Company does not complete the realignment of its capital structure through the CBCA process described above, it will be necessary to pursue other restructuring strategies, which may include, among other alternatives, proceedings under the Companies Creditors Arrangement Act (the “CCAA”) and / or a filing under the United States Bankruptcy Code. The Company may not be able to restructure and reduce its debt obligations and this results in a material uncertainty that may cast significant doubt upon the Company’s ability to continue as a going concern. These financial statements have been prepared on a going concern basis, which asserts the Company has the ability in the near term to continue to realize its assets and discharge its liabilities and commitments in a planned manner giving consideration to the above and expected possible outcomes. Conversely, if the going concern assumption is not appropriate, adjustments to the carrying amounts of the Company's assets, liabilities, revenues, expenses and balance sheet classifications may be necessary. As of September 30, 2017, the Group’s liquidity primarily consisted of approximately $341 million (December 31, 2016 - $398 million) of cash and cash equivalents. During the CBCA process, the Company intends to continue to operate its business and satisfy its obligations to its service providers, suppliers, contractors and employees in the ordinary course of business.
Comment by
meetoo1600 on Nov 16, 2017 9:50am
Rad10, that's just boilerplate that auditors use to protect themselves, a standard qualification to a going concern note in these circumstances. There is no way that they did the CBCA filing without enough votes locked up, and even less chance that they subsequently settled some of the debt at a discount in the absence of a comprehensive deal.
Comment by
meetoo1600 on Nov 16, 2017 11:07am
There is no way that either of us can prove the truth of our beliefs, so I will simply say this: There is nothing that I am doing now that I would do differently if it were confirmed that in fact the deal was not substantially completed. My bet is placed, win, lose or draw.
Comment by
rad10 on Nov 16, 2017 11:20am
Good luck to you sir - I am confident the house will be keeping your money.
Comment by
meetoo1600 on Nov 16, 2017 11:54am
It won't be too much longer before we know.
Comment by
rad10 on Nov 16, 2017 5:00pm
and every day that passes - confirms your theory is erroneous................
Comment by
born2trade on Nov 20, 2017 11:24pm
If I could ask your opinion. I am close to $5k under on CXR and averaging over $6. If you were in my position, would you average down ? What is the probability the company would go bankrupt? This was my first investment and went so horribly wrong . This was one of the recommendations on Motley Fool with price target of over $60 ..
Comment by
born2trade on Nov 21, 2017 10:11am
thank you 12Diabolical . . I am taking chance one more time and praying with folder hands . I hope your target price of $1.15 at least comes true ..