RE:Status update
Well sometimes the squeaky wheel does get the grease. We have a completely different set of personalities between Steve and Tony. Steve never returned my calls during the last couple of weeks and I did not expect a call from Tony. He started off saying the corporate compliance legal team said hold off making statements on progress with talks and in retrospect Tony said if they had not they would have been proven wrong.
Tony is more open in talking and still under a tight leash to direct questions. His answers are more detailed than Steve's. I did not ask many direct questions (salesman talking) and so I will not post Q&A format as he clearly opened with statement on his inability to answer, so we talked about general issues getting a deal done.
They have pushed out financials to the last day in the hope (his words) that they can report a deal on March 30th. He talked on output 52MW Net generating 52M revenue with 40M EBIDA which services RAM net debt. The main issue is with the world bank loan which is amortized on 38M 11YR at 9+%, they are resisting restructure and this is where the steam short fall impacts RAM the most.
Regarding current steam MW, they expect MW to decrease over time. Tony stated steam field has stabilized and not decreasing as before 3-4%.
THE PPA agreement has penalty clauses that require adjustments and in order to do that it requires an act of law, very time consuming. There is a syndication of 7 banks, (FR, AU, DE, DK, AT, IDBM and IFC) involved in the negotiations to get a deal done. If they can restructure debenture holder debt, a deal could be accomplished. On a positive note, 50M loan has had a very favorable FX move in favor of RAM to ~43M so that is important. The cone of silence fell when asked questions regarding a JV/Sale.
Here is what I take as very ominous, they are currently attempting to keep everybody alive and in the game during the strategic process . Plan is to have news release during the financials on a way forward. They anticipate something before times up for review of delisting and do not expect move to venture exchange. They will have addressed associated compliance issue with TSX as a deal will occur before that deadline. However, I asked if IDB (Inter-American Development Bank) continue with current intransigence with interest rate adjustment they will file for big BK.
I asked potential outcome for existing shareholders, (Cosmicdream your dream is dead) we will be lucky to get a few pennies as the cost to move RAM forward will be very expensive (his words). So the focus for RAM is recapitalize and restructure the debt. Bottom line do not expect anything significant for existing shareholders from any outcome, parties are still talking, they are moving forward and a deal is possible, but you will not see anything in a return unless you bought at .005¢ (my words).