RE:RE:RE:RE:PEA DebtRefinance the $180million due in 5 months, with who?
The reason they are paying 15% with the loan sharks is because the gas assets that are collateral, cannot be sold by anyone because Shell still has the operating licenses. That was supposed to be short term.
But Shell and PEA withdrew the AER application and have not resubmitted because its a lost cause as long as they have that debt hanging over them- and no demonstrated capability to eliminate it.
There is a reason PEA never puts any concrete words around paying off the debt- let alone a prediction when that can be achieved.
And remember- this is a term loan due in full 23 October, 2023. And all the assets are security. Usually companies speak specifically to deadlines like that.
The reality is that the creditor- TEC- cannot do anything with the assets if they were to take legal possession as they are contractually entitled. (Which they actually could have done long ago- TEC has waived numerous times conditions not being met that put PEA in default.... exacting each time what pound of flesh they could get.)
So, its a standoff- it does not do TEC any good to take possession. But meanwhile, until the debt is paid off TEC gets their 15%, which makes it harder to pay down debt, which....
Sure, finding another lender/investor would get them out from under this. But who is going to take as security assets without secure operating licences? If they would work, TEC would have taken possession a long time ago, and sold the assets.