Long Run Explor Ltd Ord WFREF

changchung sinoenergy down another 8.74% last night

[uograd]

This whole deal just gets stinkier all the time.

[BlueCollar51]

I think that what “yetta” posted. Investors that have had their money locked up since Feb 19 attempting to get it back is at least part of the reason for the selloff.   I haven’t been able to verify if there is any truth to what “loarbitrage” posted or not.   That said if I was a potential Chinese participant in the PP after reviewing the Q1 results (they are what they are) I could have

[wilwal]

The first day's decline in Sino's stock was perfectly logical.  It had risen about that much on the day before the halt so it was just taking that back.  Last night's decline starts to raise a red flag and increasing concern about whether or not Sino can raise the funds to close this deal.  In relation to Sino's market cap, it's a big deal.  Their market cap

[BlueCollar51]

I agree with everything that you said but I have a couple of points to add.   If I am understanding the terms of the agreement correctly;   If the review process is extended Sinoenergy has the option to extend the “Outside Closing Date” or not.. If approval is received and Sinoenergy can’t come up with the cash by the current “Outside Closing Date” the LRE BOD can grant an

[QUANTUMJUMP]

Just ballparking it , I assume approval/denial press must be out next week  IR's reply was there has been no amendments to deal since Jan29th , when I asked if there were adjustments   that Skippy kid in the BNN commercial 

[uograd]

Good points but I see the banks being as lenient and tolerant as necessary here. No way in this market would they come close to recouping what the total debt burden is here.   If there is an outside chance that LRE gets even .01 cent per share and the bankers get paid in full they would let this tragedy continue. One way or other  we should get an update on at least where

[wilwal]

Yes, in the absence of $3 nat gas and $60 oil, LRE is a serious problem for the banks.  It would be in their best interests to grant an extension if requested.  They might ask for a bit more skin into escrow so that interest can be guaranteed during the extra waiting period.

[robbie80]

Investment Canada has not granted approval yet. This is the most important thing before any extension discussion. Just wondering whether Investment Canada would check whether SinoEnergy has money to pay for the deal?

[wilwal]

I understand that the capacity to close the deal is not part of IC's parameters. I think you are quite right that negotiations to extend might not start until IC approval.  Regardless, as I have stated before, the risk here is not IC's approval as this is a slamdunk positive for Canada (positive for the banks and oil patch employment), but Sino's ability to close is the risk. I