Zargon Oil & Gas Ltd ZARFF

RE:RE:Market capitalization 48.1 million

[Method]

rad10 wrote: hawkoil

Q4 production will be diminished significantly so going off Q3 is generous.  We will have to agree to disagree about the proposal.  Have you even received any voting materials from the company?  The first offer is unlikely to be the best for noteholders.

They are not in a position to pay the interest in March and I would be more than happy to receive PIK in shares.

Either way - seasons greetings and all the best.

The PIK in shares for interest is good in theory but the actual procedure requires shares issued to the trustee who then sells them on the open market. In most likelihood the stock will go no bid in that scenario so if the trustee is unable to sell the shares then the company will file CCAA.

The receiver will cost $3-5m which is more than the equity holders are getting under the proposed debt restructuring.

We will likely be better off with a debt conversion now as opposed to later. With WCS at $54 already, we have a shot to get above 10 cents a share with no debt and some growth.

Also, all of the docs were filed on SEDAR yesterday but I know it’s not your first rodeo.