GREY:LSTMF - Post by User
Post by
bushhog1on Jul 17, 2016 10:16pm
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Post# 25060601
When did LTS got into trouble ?
When did LTS got into trouble ?LTS paid off about 200M in Debt by the end of 2015 ( not shown clearly because of
Cad$ fluctuation) included $87M from excess Cash Flow
They also reduced their deferred Taxes Liabilities by about $250M
Besides a good performance in 2015, they were profitable in Q1 2016.
Yes they had to pay Interests due June 2016, but the Ceo
said about a month before this due date, that they
have enough funds to pay all bill, including this accrued interest payments, and still
have a positive cash flow by the end of the Q2 2016 Quarter.
https://www.gowebcasting.com/events/lightstream-resources-ltd/2016/05/05/first-quarter-results-webcast-and-conference-call/play
What happened to cause this panic and caused LTS to bring on these drastic
measures
Yes, the Banks cut their LOC causing an overdraft of $120M.
But Smaller Companies like NKO and BTE had larger over due Debts
and still around and did not issue more Shares.
Couldn't LTS do what they did ?
Questions.
Why did LTS not produce more oil in Q1 2016 to avoid breaching
their EBITDA's covenant?
They had availability in their LOC then, and must have known
they will breach their covenant with lower production.
Only my opinion