OTCPK:ARNBF - Post by User
Post by
heraclituson Jun 24, 2014 5:46pm
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Post# 22691065
driving the deal
driving the dealARN is insolvent. The debenture holders did not have security but the banks did. The banks carried ARN through the while letting them drill a few of their best projects awaiting a time that they could get out of their high risk situation. Because they are secured they can pull the trigger if they want. My take is that the banks have motivated this deal now because the oil patch is feeling a little bouyant. The other interested players (LTS etc) have been tepid and awaiting for the right price. By doing this deal, the price for ARN is now clear and those that want Swan Hills are thinking about it. One may have a go at it but that will not happen for a while. The debenture holders knew they were at risk for their investment because of the insolvency and so they will probably approve if no one comes out of the bushes. The shareholders now have a debt free 12.5% piece of ARN going forward and that could play out OK. For me, if SP toddles a little lower, I may buy a little more but barring another better offer, it will be awhile for payday on this one.