FORENT ENERGY LTD. V.FEN

FEN: Going Concern, Cedit Facility matures in Q4 2016

[George98]

Guys, FEN has a Going Concern and can't pay its debt to the Bank and doesn't have any liquidity. The maturity is in Q4 2016:

At September 30, 2016, the Company had a working capital deficit of $7.0 million, including amounts drawn on its credit facility of $6.5 million. The Company currently has a credit facility with a Canadian financial institution of $7.0 million, which is repayable on demand and subject to during Q4 2016. Also, the Company has had net losses from continuing operations for the last eight quarters and has an accumulated deficit of $23.2 million. 


I think FEN will file for bankruptcy due to liquidity problems. It will be irrational if POG is a white knight and saves FEN. If POG is interested in FEN's assets, it can buy out of the bankruptcy court and buy them much cheaper. There is no reason to pay FEN's market cap now because FEN will go broke soon, in my opinion.


Have you seen Point Loma Resources (PLX)?
PLX is a new producer in Alberta with high insider ownership and ZERO Bank debt. Very undervalued with production at 800+ boepd.
 

[Theconsortman]

My only concern with Point Loma is that these are ex Thinder guys. We all know how that turned out.

[Theconsortman]

sorry: Thunder, as in Thunder Energy

[George98]

I guess you are talking about the company that the CEO founded 11 years ago. None of the other directors is coming from Thunder. And per reference Thunder: PSPIB to buy Thunder Energy Trust   Craig Sebastiano | April 25, 2007   The Public Sector Pension Investment Board and Overlord Financial have agreed to buy Thunder Energy Trust for more than $202

[Phonse47]

I think FEN/POG merger will proceed. What liquidity problems? POG is already benefiting from acquisitions provided by FEN. Read POG financials posted same day as FEN. 100% of that profitable production is because of FEN sourced acquisition. Fen still retains rights in this acquisition. Anyone can cut and paste from the financials but more comprehension is required. It appears to me there is

[mike49]

Phonse, gotta give you credit. I see a stuck pig and a new shell,you see blue sky. To each their own but really,fen has fallen down with not much encouragement or ambition to do better. Again,who wants a job? Keep it is more apt... Stay safe buddy

[Phonse47]

You too Mike! I see encouragement but will not spout a litany here. Merry Christmas and happy holidays.