TSX:CUS.DB.D - Post by User
Post by
Calgaryrideron Jun 05, 2015 11:36am
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Post# 23800814
Sold to the junk yard.
Sold to the junk yard.NATO was essentially sold at scrap metal prices.
As I said many times over the last year, A negative cash flow asset is worth nothing. Doug proved this. Astonishing stuff. As I also said, Doug hasn't been performing well either.
This company was likely forced to take AN offer by senior lenders......and my bet is they'll be forced to use it to pay off just that, senior debt. Debentures won't get paid and either they'll have to go through all sorts of capital restructuring (if the partners are willing), likely including dilution, or they'll be pushed into insolvency. I don't think $75m in cash can save them alone....it can only delay the inevitable.
Inobody else wanted to touch this asset because CUS had likely written itself into a terrible corner with the terms and conditions in their take or pay contracts.