RE: RE: RE: RE: RE: RE: RE: RE: Notes I'm not a banker so I could very well be mistaken. I thought the line of credit was secured against a facility encompassing all the assets of the company ie reserves. So in the event of bankruptcy the consortium of creditors would rank first and get all the assets, or at least enough to pay back what LEG where to owe. The new bonds as unsecured debt would rank behind and most likely be out of luck then common shareholders would be eliminated. Cashflow would come into the equation as part of the covenant on the debt to keep the company from going insane. If the bankers were leary would they not have lowered the line of credit in response to the new debt?
If I was wrong sorry if I misled anyone, not my intention, just curious how it works.