RE:RE:RE:RE:RE:COVENANT-BASED CREDIT FACILITYoilisswell, of course lenders wish companies they lend to do well. It’s easy to wish. But they aren’t going to stick their necks out much for them. Bankruptcies happen all the time as proof. And we’re all going to see a lot more proof over the couple of years unfortunately.
VET’s assets will largely continue to spit out oil and gas if it must go bankrupt. The option of bankruptcy actually better ensures this will happen. The shareholders are the ones who shoulder most of the loss during a bankruptcy process and lenders aren’t going to put themselves needlessly out there because they wish their borrowers succeed. Once again there are plenty of past examples to demonstrate this process. If VET goes bankrupt it would it not be unique.
JMHO. GLTA.
oilisswell wrote: WMG, I am surprised you're still posting here. Since you have never responded to any of my questions, I am sure you won't start now. Since you fail to read any of Vermiion's investor information, no doubt you are not aware they are well within their 4 year credit facility covenants. You are propably also aware that many other companies will default before VET. You are also likely aware that during times such as these creditors are not usually too quick to force bankruptcies as they collect very little. Of course since you know all of this, you also know that lenders do not run the company. Since these are extremely unusual times where even the most astute bankers and analysts have no idea what the future holds for the markets including commodities, it is intersting that you pretend to know. I am predicting that the bottom is near, Covid-19 wanes, oil rebounds, metals rebound, and therefore the markets recoup the losses. Also I predict VET survives and prospers, since they are more diversified than many of their peers.
The fact that lenders care about getting paid as agreed upon is the very reason lenders wish to see companies survive and prosper. Of course you knew that also.