GREY:PRBEQ - Post by User
Post by
westcoast1000on Jul 18, 2017 11:57am
142 Views
Post# 26481438
Any thoughts?
Any thoughts?Where does the responsibility for this disaster lie?
With the company? My guess is, when the new COQ was created by borrowing a whack of money to pay Morrison his 10 mil and set up the new entity, they had $100 bbl oil bringing in strong revenues and a good vision for an integrated company. That is why they paid the CEO so handsomely, for example. So they agreed to what seem like extremely high interest rates on their debt, given it was all secured through assets.
Then the oil crash came and the Morrison companies not within COQ needed cash, and COQ was the easiest way to get it. It would take a forensic audit to determine whether all the revenues due to COQ were booked properly.
Maybe the crisis is due to the lender, who is not allowing for any renegotiation on any aspect of the debt.
I would appreciate hearing from others as to their views on what went wrong here.
WC