RE:RE:RE:RE:RE:RE:RE:RE:CHAPTER 11????? RE:RE:RE:RE:RE:RE:RE:CHAPTER 11?????
I agree Chapter 11, in the short term, is not a risk.
They have enough cash to kick the can down the road, but eventually, the debt holders will come to the realization that the antiquated Cuban JV will never generate enough cash to service the entire debt load + high overhead (corporate office, high executive salaries, etc) + 12% of future Madagascar cash flows.
I suspect they will have a tough time refinicing the next round, then there could be trouble.
Have you done the calculations or are you just talking out of your backside? Because I have. At current nickel and cobalt prices Sherritt pays back all of their debt as it matures. That is why the bonds trade where they do. At likely improved future nickel price the situation gets even more interesting.