the problem......this is from one of the latest filing Leg has made, and this is why the market has its doubts about the company surviving weak oil prices:
The Company is subject to certain reporting and financial covenants in its credit facility agreement. At March 31, 2014, the credit
facility has financial covenants that limit the ratio of (i) credit note debt to earnings before interest, taxes, depletion, depreciation
and amortization (“EBITDA”) as at the end of each fiscal quarter up to and including March 31, 2014 to 3.75:1; (ii) unsecured credit
note debt to EBITDA as at the end of each fiscal quarter from and after March 31, 2014 to 3.0:1; (iii) total long-term borrowings
(including bank debt and credit note debt) to EBITDA as at the end of each fiscal quarter up to and including March 31, 2014 to
4.75:1; and (iv) total long-term borrowings (including bank debt and credit note debt) to EBITDA as at the end of each fiscal quarter
from and after March 31, 2014 to 4.0:1. The Company is in compliance with all covenants as at March 31, 2014 and December 31,
2013.