RE:Redemption of 10.75% PIK NotesHi CPA023 - I just now saw your post about the Company's ability to redeem PIK bonds based on the basket of qualifying restricted payments and so I went and read the appropriate clause again and wanted to say that I agree with your interpretation and that I now think my previous statement was wrong. Its unusual for a Company to allow the redemption of subordinate debt ahead of the retirement or maturity of senior debt but there is alot that is unusual about this situation.
The Company doesn't disclose the size of the available restricted payment "pool" but it is as you said 50% of positive cumulative Consolidated Net Income from January 1, 2020. The consolidated net income calculation normalizes for non-cash gains/losses, excludes Energas operating earnings but includes cash received from Energas.
Thanks for digging in to that and correcting me.
Contrarian333