Arcan Resources Ltd ARNBF

RE:the bottom line.....

[freenpv]

teevee wrote: The banks  fired a shot across the bow when they cut the line of credit by $10 million. If the shareholders and debenture holders vote against this plan, they are at risk of the bank pulling the plug and fire selling all the assets held as collateral against the line of credit. Under that scenario, equity gets zero and debenture holders would be lucky to get $.50 on the dollar. The only upside to the plan would be if a 3rd party stepped up, offering a better deal, and I doubt that will happen as a large shareholder like Crescent Point would most likely prefer to buy ARN's assets from the bank after they called the line of credit. 

This just isnt true. The banks are fine extending the credit line to the new buyers so why wouldnt they be comfortable exnding it once convert holders force convert and end up having all the equity.

The company is obviously viable as Gould is putting up serious cash for the assets. It just has a bad capital strcutre that needs to be fixed.

Worse case if debenture holders vote no, the 2016 will get force converted in 20 months. As an owner of those bonds I would rather that than take 82c on the dollar. The last well results were great!