Delphi Energy Corp. DPGYF

Prediction

[pennydredful]

Dilution    Pending;     The  listed    notes    maturing    July   2021    will   be  exchanged    for    some     shares       and      a  lesser    #    of new  notes     than  currently   outstanding   with  the  maturity    of    the  new  notes   to  be  in  about    5   years   .   The   majority  U.S. based   note    holder   and  significant    shareholder   will   heavily   influence   the    terms of this  reorganization   This    is    how  the  company   will   reduce    some    debt    at   the  cost   of  considerable   dilution  and    kick    some  debt    down    the  road.

[Raymondjames]

Devil will be in the details. Would rather own the note. 

[pennydredful]

Presumably   the  deal   should   favour    the  note  holders    as     the    US   based   for mentioned   entity  as  many    more   $$$    in  notes     than    in

[Raymondjames]

Agreed. The note holders own the assets which are good assets. Cash flow from the increasingly condensate based production (and assuming wti doesn’t fall to $40) is sufficient to cover debt payments. I would not at all be surprised If the notes trade closer to par after a potential deal. Would likely need to add 2 points to the existing notes to make it happen. At 80 cents, you are looking at 14

[pennydredful]

I    hope    they    include    a  reverse   split    of   about    1  for    50    as  part   of    the  plan   so   the  shares  are    at    about  

[Raymondjames]

Margin is important here. I like the suggestion of a $5 + share as it would attract 70% margin. 

[pennydredful]

Would   be   50%     initially   .    Would    only   go  to  70%    with     required   capitalization   and   trading    volume     which     would  be  a  stretch

[Raymondjames]

All quiet.