GREY:ARWJF - Post by User
Post by
GUNSSon Apr 07, 2015 2:54pm
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Post# 23605274
I think ARW gets the loan, but then what?
I think ARW gets the loan, but then what? If ARW gets a credit facility allowing them to draw down $25 million, the shareholders avoid default and chapter 11. But, then what? Let's say they use $10mm to pay off all debt. Then they have $15mm of undrawn capacity, (not debt, undrawn debt capacity). $15 mm is pretty impressive given the market cap of what, $3 mm? Something like that?
That would give ARW significant leverage to a rebound in the price of oil. Unless they deploy the $15 mm into mediocre or worse assets or companies.