robbie25 re debts $700M????robbie25,
yuo stated: "That's all I'm saying.....I used the 900 million number as an example....it comes down to this....do you think they will get more then 700 million? After the debt is paid, all they need is around 38 million for people who bought at the current SP to break even....everything over that is gravy..."
According to the RBC Capital Markets report dated January 6, in addition to the bank debt of $700M, there were outstanding unsecured liabilities of ONSL of around $200M. The debt could be even be as high as $1B according to a message posted by Panda (
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=25735843&l=0&r=0&s=OIL&t=LIST) . And, this does not include the drilling rig commitments of $470M. Unlike what some on this board are suggesting, cancelling rig commitments is not something ONSL can do unilateraly. It does not sound like Transocean is willing to cancel its contract, according to this newspaper article:
https://www.bloomberg.com/apps/news?pid=20601087&sid=aAFpbgihu9Qw&refer=home
"... Transocean said it’s pursuing “appropriate remedies” against Burgundy and Oilexco, without elaborating."
Just because ONSL claims that it has cancelled one (or all) of its drilling rig contracts, does not necessarily mean that its financial obligations relating to these contracts have completely disappeared. The rig contractors would have the right to sue ONSL for breach of contract.