Bonavista Energy Corp BNPUF

RE:RE:news out

[Hendrick3]

Obviously this is not good news but interestingly the stock didn't react immediately. Only today did the stock start to really go down but it started up by a wide margin. 

BK is not a sure thing at all. First of all Bonavista is right to call out the banks for reneging in an approved line of credit and also right for outing them by name. I think the banks may be anticipating federal assistance and wants to see if they can get some guarantees. One thing the bank doesn't want us to end up running this company. There is nothing but aggravation in pulling the plug in the current environment. 

they may be borrowing a play from the recent OBE credit agreement where they were able to get other creditors to carry their debt for an extended period rather than the bank just adding to their tab. It's likely a game of chicken which will get settled and the price should respond accordingly. I thinks it's a good speculation at this price for a small stake but I wouldn't go all in as the company is not in a position of strength even if they come through this.