RE:RE:RE:RE:RE:I have never been more confident being ShortJohnnysback wrote: d_trump wrote: Just because the debt is due in 4 years doesn't mean they have to come up with that amount of cash....as long as oil prices are at a reasonable level, their assets will have a value that will provide them with ample refinancing options.
MEG just did a bunch of refinancing... people draw a straight line and say this is where BTE cannot pay their debts and go bankrupt... lol, like the banks want to own oil companies.. they dont, so the debt will be renegotiated and pushed out for another 3 to 6 years. Guaranteed. The banks want interest income. thats it... As long as BTE can show they can manage the debt and perhaps have even paid back a small portion its a no brainer..
Ya its really quite simple....oil prices dictate cashflow which dictates asset values. As long as BTE's asset values stay north of $3B, refinancing $1.8B is no sweat. If oil prices are north of $60, the banks will be lined up wanting to do the deal. The higher the oil prices the more favourable the terms.
I ignore the fear-mongering posts - these people are simply demonstrating their ignorance of the capital markets.