TSX:HSE.PR.B - Post by User
Comment by
onec007on Mar 10, 2020 8:35pm
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Post# 30791105
RE:RE:RE:Chances of bankruptcy
RE:RE:RE:Chances of bankruptcyThe company currently has $950 mil in short term debt due within one year. They could always refinance and push these dates out. Few points to consider: 1. Total of $3.9 billion in unused capital that they can borrow ($436 for short term and $3.45 billion for long term) 2. Sale of their retail business is still in place - possibility I think has greatly been reduced. However, these assets are fairly coveted so can still find a buyer but possibly at a lower price. 3. LKS can definitely be a lifeline. Back in 2016 they bought Husky's mid-stream assets for $1.7 billion so it is definitely possible. LKS has already lost significant money in Husky but don't think they will allow it to go bust as the company isn't financially in distress and LKS family is still very much involved in board meetings.