Concordia Healthcare Corp. T.CXR.R

secured debt now 89 cents on the dollar

[rad10]

This company has over 62 million dollars of outstanding interest on 3 unsecured debt instruments - now 2 months overdue. 

It wants to restructure more than 2 billion dollars in a debt for equity swap - and the existing equity holders expect to make out like bandits!  Please note this is less than half of the company's total liabilities.

There is only one intelligent place to park your hard earned cash in this pig................

When I see insiders buying or awarding themselves new options we can revisit the situation.

Traders - enjoy the volatility - it will be wild ride for you guys!

[meetoo1600]

Don't let rad10's $62 million figure scare you.  At the same time, the company has something well in excess of $400 million in cash and additional unused credit facilities.  It is not withholding the interest payments because it cannot make them.  It can.  But it's saving the money for later payment to the secured debt-holders, the ones who will really matter down

[S2hadi90]

Meetoo; I've put all my money in CXR, and I don't know what to do. I keep placing "sell" orders @ 1.07, 1.40 etc., and then cancelling them a few minutes later.  How confident are you that CXR will one day reach, at least $5 per share, and that I shouldnt sell at $1.40?  I mean look at Valeant. The analysts once said that it was going to go under but now they're

[rad10]

This has to be BS - right? 

[rad10]

Meetoo as of September 30th they had 340 million cash on hand. I doubt they have anything close to that now. As for unused credit facilities - those disappear as soon as there is a default. See where your rose tinted advice is getting people? I hope the other poster is BSing - i would hate to be part responsible for that situation. From stockhouse to flophouse.....

[meetoo1600]

rad10, at least we agree on the numbers, $340MM + $62MM withheld interest.  In fact, the $400MM number is probably too low because they are cash-flow positive, so something would have accumulated between Sept 30 and Dec 31 other than the withheld interest. BTW, my rose tinted advice could not have been responsible for anyone buying at $2, $3, $4 or above.  I wasn't engaged then

[rad10]

You are adding those together to get to 400 million? SMH - i am no CPA but that is ludicrous

[meetoo1600]

You are not an experienced debater either, for that is not an articulate response,  It adds nothing to the conversation.

[rad10]

whilst articulate in an effortlessly superior private school manner - you have been consistently wrong on this subject. (Mas)debating society at upper Canada college was never really my thing. No hard feelings. Deferred interest is an accrued liability - you can't add it to cash on hand. Even the kids from the wrong side of the tracks know that!

[meetoo1600]

Rad10 said: Deferred interest is an accrued liability - you can't add it to cash on hand. Even the kids from the wrong side of the tracks know that![/quote] You are correct from an accounting point of view (GAAP or IFRS), but not from a financial restructuring point of view.  The restructuring will cancel the debt, including the deferred interest, and it will no longer be a liability

[rad10]

You are correct from an accounting point of view (GAAP or IFRS), but not from a financial restructuring point of view.  The restructuring will cancel the debt, including the deferred interest, and it will no longer be a liability and no longer payable.  C’mon rad10, everyone understands that no matter what side of the tracks he or she is from. The only question is how much of the

[meetoo1600]

rad10 wrote:  Why on earth would any unsecured noteholder agree to a deal that left significant upside to current shareholders? I have already explained why, more than once.