Bridge Resources Corp V.BUK

Bridge in dire financial straits - MD&A

[CalifDreaming]

 Current Financial Condition and Going Concern
Bridge actively monitors its financing obligations and cash to assess whether it has sufficient available funds to meet
its current and foreseeable future financial requirements. A restructuring of current debt arrangements or additional
debt and/or equity financing is essential if the Company is to meet current and future operating requirements.
Bridge does not currently possess the financial resources to satisfy principal and interest payments due on its debt facilities in 2011. Management anticipates future cash flows from the production of its Idaho reserves. However, the Company does not have adequate cash to meet the capital and operating requirements required prior to the commencement of production. The Lending Syndicate is evaluating options to provide additional funding or a recapitalization of the Company. The Company expects any restructuring options that may be provided by the Lending Syndicate will be subject to its review of the submitted Bridge Field Development Plan to produce the Idaho reserves, joint venture participation, as well as other considerations.
 
Management anticipates that the Lending Syndicate will make a determination as to their continued support within
the current calendar quarter. There can be no assurances of continued financial support from the Lending Syndicate.
Should the Lending Syndicate demand application of Restricted Cash as repayment of the loan, the Company will immediately cease to exist as a going concern. The Lending Syndicate currently retains the right to apply any remaining cash in the Debt Service Reserve Account to the outstanding principal and interest under the Senior Facility and holds a first security charge over the Company’s Western Idaho Basin assets. As of July 29, 2011,
approximately $686,000 (£420,000) remained in the Debt Service Reserve Account which is classified as restricted
cash on the balance sheet.

[cfhasib]

I felt this post was a bit misleading, This MD&A was done quite a while back and as we know MD&As are essentially a review of last year (2010). The sell of Northern Sea to Penaco was part of its restructuring and fund accumulation which entitled Bridge to a further 8 Million dollars (plus 18% profit should Penaco goes into production). I think the previous post of MD&A at this point of