RE:RE:Cash Sweep?As of December 31, they had 54.2 mm of liquidity if you consider the cash in Canada, the line of credit 46.5 mm and the amount paid for the buy back 80.4 mm. So this would be under 75 mm and they would not have to repay anything.
However, the target date is April 30. If one believes that Sherrit could pay all it long term debt this year like I do, cash will pile up in the treasury no matter what games you might want to play. And thinking about it, they only had a discount of 10% last fall. So, the company does not save that much versus the 8.5% coupon left unpaid.
So we might see a last buy back before the mandatory sweep so they try to pick up a discount. However, I would not mind them having to do the cash sweep, would send a pretty good message to the market on their liquidity.
GLTA