RE:RE:RE:Risk/ Reward, looks good to me. Blazesb,
Technically, RMP's Board or the "Special Committee" is in the driver's seat and not the bank or lenders.
As you know, oil and gas companies typically must borrow to help finance drilling, exploration and other operations. Lenders often use a companys proved reserves as collateral for these loans. However, because commodity prices are volatile, banks typically reset the value of these reserves twice a year.
As a result of the latest borrowing base redetermination, RMPs line will be cut to $100 mm as of end of Oct. I think, about $85 mm would be a comfortable debt level which is $20 mm less than net debt of $105 reported in Q2.
$20 mm can be raised by issuing debt - Notes and/or Convertible Debentures, or by selling non core assets, or whatever. Instead, the company has initiated a process to review strategic alternatives. I think, the management and probably major shareholders, feel that hibernating or moving sideways is not the best option and that it's assets are highly prospective but need much stronger hands to move forward.
Call it firesale or whatever, but I see a lot of transactions lately and for every seller there is a willing buyer capable of raising large amounts of money using equity and debt. Premiums are lower than 2 years ago, but nothing has been thrown away.