RE:RE:RE:RE:The Restructuring PlanI like your Anology. And I agree with why pay high interest to borrow when you have cash? Maybe, they want to conserve cash to justify paying Catalyst, Gramacy and us a higher dividend this Qtr and maybe they know the loans will be short term as they may know a deal of one of the 3 parts is close??
However, I think there was some thought from de Alba and group on this. It is rare for bond holders to release substantial collateral on a micro cap company until after a sale of an asset guaranteeing cash will be coming in to pay off or back up the bonds. However, both Catalyst and Gramercy own some of these bonds and likely influence other bond holders in Fund V who would have had to sign off of releasing such a large part of the company backing up their $$. Thus, maybe they know a sale of one of the 3 parts is close, maybe not
This is my understanding. They is NO debt associated with Frontera Guyana. If a deal were announced Wed they had a sale for $1Bil, there are no mandatory debts to pay off. If in cash, it would go to FEC who likely would pay down some/all of the company debt and maybe make a special distribution as mentioned last qtr. to shareholders that Catalyst/Gramercy get more than half of.
With Frontera Infrastructure now no longer collateral for the bonds, if they were sold for $1 to $1.5 Bil (seemingly a bargain), the approx $125mm in loans tied directly to them would have to be accounted for when sold.
I read today that the total current investment in the port is $950mm. The ODL 24 inch 260km high capacity pipeline was very costly to build in 2009 and a major pipeline in Colombia and likely could not be built today and FEC owns 35% of it, it brings in more money than the port. PRE helped finance it to go to their oil fields and reduce transportation costs Home - Eastern Plains Pipeline -ODL
So, we still have Frontera Colombia to account for in a standalone sale. Is it worth a minimum of $Bil net assuming the debt is still remaining? And $1.5Bil if debt free? It generates a lot of cash, particularly if debt free.
All I know for sure, is if the company promoted itself as it should have over the past 18+ months, the share price would be far higher than a company that been running completely dark with only news coming out when Mandatory such as the 1 Qtr reports due Wed night, and likely late at night as usual. That seems very strange to me when a company is trying to sell itself for top dollar. Why would Catalyst be forcing FEC, and CGX to have complete news/promotional blackouts?