RE:Earnings Release is Out!!Spark has gone to BMOs credit people for accomodations far too many times in the last year. The last time was December 16, and then they blow the covenants Dec 31st. I would suspect they have a huge credibility gap with the credit people. There is only so many times until a bank says no mas. We may be there.
Spark likely can't do another rights offering (I assume their insiders only have so much to contribute). Not sure how many other levers there are.
I suspect right now Spark has outside people in (hired by BMO, but ultimately paid for by Spark) whose sole focus is what is the right thing to do from BMOs perspective. I would guess anything that is saleable and would help reduce debt is on the block. Otherwise, if this was a straightforward covenant waiver, it would have been done by now.
How much more lenient will BMO be cause they are a customer of Bullfrog Power? I don't think their credit people would even consider that. Ultimately it is their job to minimize or eliminate credit losses. BMO I'm sure can find other ways to be green.