RE:RE:RE:RE:RE:RE:RE:jan 11Curv
Yes they can operate for years in CCAA. Thats sound like something no one really wants to do if not necessary. The Dip lender loan is only priority over other debt in the amount of dip loan and interest. So if W were to give P a dip loan for 15-30 million and arguably they dont need one now then the debt would still be stacked in priority. You can rest assured mexico would be claiming their taxes run with the land and are top of the debt heap. So the debt would shake out in priority with taxes and dip lender top of heap. The bondies next and the stream somewhere ahead of vendors. Not a win for W.
Probably easier and more beneficial for W to allow the can to be kicked down the road by backing any existing or slightly increased revolver. If P drops the ball again in next few qtrs then indeed it will need CCAA or take under sale. W has already backed a loan for 75 million so backing a new unused revolver for 30 million seems smart.