Parallel Energy Trust T.PLT.DB

RE:RE:RE:Good case study. Lesson for future investments

[Kherson]

PUNJABI wrote:

Kherson wrote:

PUNJABI wrote: If the oil stays at these prices for a while then other companies with high debt will face similar situation.

Banks did not renew the debt facility so by month end they will be in default. Not much time left to find a buyer. They have to be looking for a buyer for a while.  Maybe the buyer(s) are waiting for the default to pick up pieces.  The only question is will there be any money left after the sale of assets & payment of debt. The left over money if any will be distributed to the shareholders.

Selling asset at this time is going to be disastrous.  The management should have found a solution to the repayment of debt much earlier. Had they sold the assets much earlier the shareholders would have been better off but the management would have lost their jobs.

This stock is being removed from the small cap index on Friday. A few more shares will come to the market.
 
 

Folks, there is alot of mis-information floating around today on what exactly the NR concerning the credit facility actually states! The trust will not be in default come September 30th, if indeed no new terms can be agreed upon! What will take place is that the credit facility will become a demand loan and will be required to be paid in full on September 30th, 2016!
Kherson
 

PARALLEL ENERGY TRUST ANNOUNCES UPDATE ON BANK FACILITY

As previously announced, Parallel Energy Trust has requested an extension from Parallel's lending syndicate of its $165-million (U.S.) credit facility, which expires on Sept. 30, 2015. Based on discussions to date, the facility will not be renewed on the same or similar terms and conditions, and Parallel is working with its lenders on alternative arrangements. Parallel's board of directors is continuing to explore strategic alternatives as part of its previously announced strategic alternatives process. There can be no assurances that alternative arrangements will be agreed to with Parallel's lending syndicate or, given the current commodity price environment, that the strategic alternatives process will result in offers in excess of the trust's current indebtedness.

Now where does the news release say

  that the credit facility will become a demand loan and will be required to be paid in full on September 30th, 2016!

What I understand from the news release is that there is no extension which is implied that the credit is due for payment on Sept 30 2015. If they do not come up with payment or new arrangement they are technically in default & bank can start the process of foreclosure.

They can have a new arrangement sell some or all assets. Now if the bank decides to foreclose. They can stall for some time by going into creditor protection.   This will only buy them time. Maybe they can find a buyer during that time. So far it seems that the management has been sitting idle not doing much  & protecting their job for as long as possible. They should have sold some or all assets while back when the writing was on the wall.

Punjabi, I will ask you again, why are you posting on this SH board if you have no interest in the company as you have stated today?
Kherson