Parallel Energy Trust T.PLT.DB

RE:RE:RE:Good case study. Lesson for future investments

[gvixid]

I spoke to IR again yesterday.... Asked about the press release and was told that a likely outcome is a new credit agreement, perhaps with some covenants. Right now Parallel has no covenants on their debt agreement. An example would be a quarterly review instead of semi annually, as it is now. IR also said that Parallel is one of the first oil companies to get reviewed, and so could be a 'test case' for all the upcoming reviews of other companies...they are certainly not alone in feeling the squeeze from banks. Not in the banks interest to seize assets...if they do it with Parallel, then why not with other companies? LTS, AET.UN, PWT...the banks aren't looking to run oilfields. Expect more restrictive terms...perhaps an eventual asset sale...but Parallel should still be operating come end of September