RE:RE:Blame management!I believe the PR said that the initial default event on the LOC triggered simultaneous default for all the lower ranking debt. It only makes sense that bond holders would want a clause protecting them if the first guys in line aren't getting an interest payment.
This was not a voluntary deal. If they didnt make this deal they would be going into bankruptcy and liquidating the assets. If they went this route then all the secured creditors would get paid in full before unsecured creditors or shareholders got a penny. That's the law so I hope this isn't a surprise a sophisticated bunch of investors on SH!
Folks, I lost a bunch on this stock too (sold at .22) but I knew the gamble that I was taking and honestly believe management did the best they could during the time that I owned (starting late 2013). I was shocked that they made it through the Q4 LOC review only to have it yanked in the recent review. That's crappy (and probably malicious) but they could have found alternative financing to resolve the shortfall if they weren't already so leveraged. so leverage was the issue and EVERYONE knew that LTS was leveraged.
Now I am considering a new position in the new LTS. The assets are killer and the debt situation is healthy. I just want to make sure I understand the math on the deal before jumping in.
bushhog1 wrote:
LTS Debts ( Secured and unsecured Bonds) were due till in 2019
and they had no problem paying their interests.
Even in Q1 2016 when Oil prices were at its lowest they were making their
interest payments.
Oil is on its way up, why this rush to pay off their Bond Debts, that is due in 2019,
right now.
In Q2 2015 last year LTS had no Secured Bonds Debt.
Now the Secured Bondholders have us$650Mln Secured Bonds, and LTS wants them to own 95% of the Company.
Issuing Billions of shares to dilute the present Shareholders is not right.
Only my opinion