Post by
RichyRich$ on Mar 28, 2020 7:49pm
Bellatrix CCAA Extended to June 8
Courts have approved it a few days ago. Shows on PWC website. The Monitors Report also showed that they banked cash and paid down the CCAA debt by $9 Million. It said they're in a position where they don't expect they'll need to borrow more in spite of the CCAA dragging out longer. Also... it said that there have been numerous interested buyers but no binding offers yet and that interested parties are doing their due diligence. I heard that they were waiting for the year end reserve results which I heard are positive from last years drilling a success. So the predictions that low oil will lower NG byproduct production in the U.S. Shale slowdown should spike NG over the next 12 months. Many articles are coming out that investors are moving from Oil to Natural Gas. If this is true... it means more potential buyers could come to the table. Also... given the Canadian Dollar is so weak now compared to the U.S. Dollar... the timing is ripe for a U.S. investor to take advantage of the weak Canada to US currency. They could buy Bellatrix with U.S. dollars and bank the favourable exchange rate advantage. The rule of economics is that when a Countries currency weakens... it increases foreign investment into that country. Also... with the new Canadian Government Bailout money... I read that they might not give the money to the Oil & Gas companies directly... but provide the lenders incentives to lend more to the energy sector. So the Government lending to the banks at low rates for them to lend to the energy sector. If that's the case... then I predict that if a favourable buyout amount doesn't happen... that the current lenders to Bellatrix will take advantage of the new Canadian Bailout Money and extend the debt to 2025. The lenders of Bellatrix wont want to lose their $110 Million tied up in the common shares if there's bailout money to prolong Bellatrix. Especially since they're able to keep afloat without adding debt even at these low prices and NG predicted to go up if Oil stays low. Prolonging Bellatrix would also buy time for the LNG Pipeline to be built in a few years and by then we'll be laughing with exports directly to ASIA. If the lenders of Bellatrix don't get a good buyout offer and they think longterm and take advantage of the Canadian Government bailout money... it would be ludicrous to accept a low ball offer and lose their $110 Million. If they continue Bellatrix... I suppose they'll change the Name of the Company and relist as a different name and symbol due to the chart of BXE looking horrible! Also... if we relist... we get to ride the energy sector rebound along with all the other beaten down energy stocks. We would ride the huge rebound along with other beaten Canadian stocks like Crew Energy CR.TO at 18 cents per share now! I hope we do get bought out though! I'm imagining if we get bought out and receive our money in 3 months. Imagine if WTI Oil is around $15.00. We could take that Bellatrix money and buy HOU.TO the 2 X Oil Bull ETF and triple our money as Oil rebounds! If the stars align!