GREY:ZARFF - Post by User
Comment by
Philbert77on Nov 11, 2018 4:36pm
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Post# 28957305
RE:RE:Best Hope is to Keep Company Intact, for now
RE:RE:Best Hope is to Keep Company Intact, for nowI concur. Thanks to PetroExplorer (and rad10) for sprinking some common sense and wisdom into the forum. The price has got to turn but who knows when.
“The market can stay irrational longer than you can stay solvent.”
It would seem to me that the biggest concern is: how long can these low prices continue and Zargon be able to operate? the larger more capitalized companies can endure a longer period of low prices. Zargon is a little fish, with very lttle capital. At some point wouldn't Zargon have to declare bankruptcy?
What bank would extend them a line of credit?
I am not declaring that the sky is falling or the end is nigh. Just analyzing the possibilites.
To me it seems like there are 4 possible outcomes in the next year (or combinations of the below):
1) buyout
2) extend the debentures
3) recapitalize
4) bankruptcy