GREY:PEYTF - Post by User
Comment by
alxorenon Jan 03, 2015 12:57pm
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Post# 23282409
RE:RE:Energy Crisis As Early As 2016
RE:RE:Energy Crisis As Early As 2016At those rough times , it is better to be without the distribution but with a valid sustainable company.
With current energy prices, distribution can destabilize the company cash flow. A better use of this money is to buy out the debentures holders at current debenture prices of 55-60 cents on the dollar.
If the company will not be able to repay those in 2017, it will go under, and all the assets are subject to be confiscated by the Bank credit facility ... so you will remain with nothing when the energy prices will bounce back.
This is not to mention that the Bank can squeeze the credit facility as the collateral (the N.G and oil underground) is worth 50% less. then the credit line can be reduced from 190M to 120M .. and the company will need to give the bank another 40M just to be withing the new credit facility limit.
Where will they take that money ???? they can't even sell any rig at this prices .. There is real danger of bankrupcy here ... reflected in the share price
So the distribution should be the last of your worries!!