CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:RE:RE:A worrisome article.....

[Kherson]

ocean112 wrote: The part that worries me is whether there is a permanent impairment to the Bruderheim asset....all of our investments are predicated on the ability to sell NATO to fix the balance sheet - but if they are not able to recover thier cost given the overruns - that will impact any potential upside...even at these prices.

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Amid speculation of a sale some analysts have questioned how valuable an asset Bruderheim really is.

Canadian crude-by-rail exports reached a record 160,000 bpd in the first quarter of 2014 and are rising fast.

But much of the demand is driven by lack of pipeline space, and the oil-by-rail sector is vulnerable to new projects such as TransCanada Corp's planned 1.1 million bpd Energy East pipeline.

"When you invest in assets like this you normally want to see 15 to 20 years ahead. The risk is that the window for these terminals could be less if pipelines get approved," said BMO Capital Markets analyst Joel Jackson. (Reporting by Nia Williams; Editing by Steve Orlofsky)

This is why I stated a week ago that Canexus needs to hold on to Blundeheim and make it work as it was supposed to. Having said that, someone like Cenovus would love to pick up Blunderheim at firesale prices. The only way that Canexus can now survive financially is to eliminate the dividend...
Kherson