GREY:ZARFF - Post by User
Comment by
rad10on Nov 11, 2018 8:55pm
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Post# 28957800
RE:RE:RE:Best Hope is to Keep Company Intact, for now
RE:RE:RE:Best Hope is to Keep Company Intact, for nowHi Philbert - i agree - we will see a series of events unfold. Recapitalization means the debentures take over the equity of the company early next year. Existing shareholders will be wiped out. The 41 million of unsecured debenture debt (face value) becomes the majority of the equity. Debs are currently priced for this event. 20 million seems about right for the ND assets and the tax pools.....
Only then will the company be able to get a secured bank line of credit to keep the lights on. Hopefully increases in refining capacity and increased pipeline capacity get this ridiculous spread back to more sustainable levels. If they don't then CCAA follows.....
Albertas economy will take a while to recover from this nightmare. Criminal that assets are being given away in this manner. Refiners are making out like bandits. I loaded up on BP. a couple of weeks ago. They are the only ones "printing cash" in this scenario.