Painted Pony Pete Ltd PDPYF

RE:RE:Up against the wall

[roscoe74]

Its the shareholders that are up against the wall. In a chat with the company, the thrust of the decision making process is two fold. The banks are not extending credit and the transportation take or pays due Jan 2021 are insurmountable. There is no liquidity. Lenders are simply de-marketing their clients.

Until the vote, the bank line is drawable to $C 250 million of which $165 m is drawn and present/future letters of credit remove $88 m. With no growth, there is no chance of monetising excess processing and transportation capacity and the G+A is cut as far as it can to operate.

The sales process was very comprehensive with CNQ. They will walk and Pony ask for CCCAA protection while a restructuring team takes over. There is no surety that shareholders will receive anything.

The simple fact is that this low price environment has gone on too long for a quick corporate recovery without lender support. The debt obligations are growing faster than the revenue stream can reduce it.

The options are to vote Yes to the crappy deal and get $.69 or vote No and likely get nothing. I dont like it but when one strips the bias and emotion out, Yes will be my vote because No will be 'too little, too late'.