RE:RE:3 scenario in payment to ventorsYou have to remember that a business"firing on all cylinders" should have never had to make arrangements to defer half of the payment in the first place. If they now have to draw on the revolver to pay a "portion" of the payment, even the revised guidance will be in question and you can stick a fork in this pig once and for all.
Craigbad wrote: I actually think scenario 2 is the worst. Rbc anticipates they may draw on the revolver to pay a portion of the payout. This would confirm not everything is as it seems and will shake even the most delusional Concordia fanboy. I think it takes a huge haircut with scenario 2.
mingzhu wrote: 1, paid as promised without dipping into the loan
SP will jump 10 to 20%
2, paid with dipping into the loan
SP goes no where
3, did not pay but promise to pay in full in Feb.
SP will be crashed more than 50%
My guess is the second. It may have enough money to pay, but want to involve lthe ender in this difficult time, and save some money just incase. It may borrow 100 m out 200 m and take the lender into such high risk situation. The lender can not refuse. I think this will be samrt move.
As for the takeover, i think it is difficult at present because of the uncertainty in UK. Another reason is that even though SP is down over 95%, the enterprise Value is very high. Even SP goes to 0, acquirer still has to pay at least 3.2 b.