RE:RE:RE:RE:JV?I am just saying that TAT is in a real bind that has to be solved by the end of the month. Maybe they can get an extension or waiver but they cannot count on it. They are in active discussions and VLE is in an active process, or part of the process. No, they do not have all of the info generally needed and at least 3 parties are concerned so I imagine any deal is going to be complicated. One big advantage is that many of the leases are already profitable and the infrastructure is in place. Maybe any 3rd party will want to participate in the existing income flow from TAT's part of the deal as TAT needs a cash infusion. VLE needs someone to invest cash to speed up the deep exploration of this large project.
I would think a JV announcement would be good for VLE and very good for TAT. If TAT cannot cut a deal, then it gets a lot more complicated for VLE with TAT being the operator.
TAT's price has held up far better than one would expect following this news last Fri. In fact it was up when I last looked. I do not know if TAT has made apparent they are in discussions for a deal, but you would think since VLE said they are, some know.
Here is a cut from last Fridays TAT news release this spells out their urgency to cut a deal by 3/31 unless the banks agree to concenssions. And remember their Albanian deal involved no cash infusion and the Albanians are saying it is a ghost transaction to try and shed some debt. So, it is obvious something has to happen on TAT's end soon and anything that happens is going to affect VLE.
Due to the precipitous decline in Brent crude oil prices during 2015, the borrowing base under the Company’s senior credit facility (the “Senior Credit Facility”) with BNP Paribas (Suisse) SA (“BNP Paribas”) and the International Finance Corporation (“IFC”) was decreased to $16.6 million effective December 30, 2015. The decline in the borrowing base resulted in a $15.5 million borrowing base deficiency under the Senior Credit Facility as of December 31, 2015. As of December 31, 2015, the Company had $32.1 million outstanding under the Senior Credit Facility and no availability.
On December 30, 2015, the Company entered into a waiver with the lenders under the Senior Credit Facility with respect to certain defaults that existed as of December 30, 2015, including, among other things, the borrowing base deficiency which the waiver requires to be repaid by March 31, 2016.
The Company expects to seek a waiver or extension from its lenders of the requirement to repay the borrowing base deficiency. There is no assurance that the Company will be able to obtain the waiver or an extension of the requirement to repay the borrowing base deficiency.
If the Company is unable to repay the borrowing base deficiency or obtain a waiver or extension by March 31, 2016, the Company will be in default under the Senior Credit Facility and cross-default under its outstanding convertible notes. If the Company is in default under the Senior Credit Facility, the lenders could declare all outstanding principal and interest to be immediately due and payable.
In addition, due to the substantial drop in oil prices, the amount and maturity dates of its current debt obligations, uncertainty regarding the availability of alternative financing, uncertainty regarding the Company’s asset sale processes and its ongoing debt restructuring process, as well as other potential factors not within the Company’s control, the Company expects that its auditor’s opinion to be issued in connection with the Company’s 2015 financial statements will include a going concern explanatory paragraph.