The bank would not let Delphi monetize it hedges that on April 9, the hedges were valued at 15.2 million dollars and all they needed was 1.8 million to stay on side with the banks.
Now on April 24 they have monetized their hedges for 17.2 million dollars, does that not mean practically they have in hand the 1.8 million dollars the banks were asking for, and now 15.4 million of additional cash from the hedges, so are the banks really offside anymore. In face they are 2 million dollars up on the hedges now.
Time to go after the banks for messing in the internal affairs, and impacing managements decision to operate the company properly, and protect the interest of the share holders.
Delphi should take they banks to court, this is stupid, and now they have no hedges but only 14 million in bank debt.
The senior not holders (Banks) are owed 31.18 million dollars, the sales from the hedges will repay 17.19 million dollars leaving what is owed to the senior note holders to be 13.99 million dollars.
So three banks sharing the risk of 13.99 million dollars force a stop trading order, on a company that is up on all its obligations, and because the banks get spooked in an oil crisis, one of the three pull the rug out from the note holders and share holders of Delphi. They should go to court on this one.
So my guess is that by the end of Q2 if Delphi doesn't drill any wells in Q2 the money owing to the banks will be zero, and they will go away and pretend like this never happened. Those bankers are scum bags and that is the only way to discribe them.
So they should sue the banks for the damages, and they will simply need a 20 million dollar line from some bank, they should start trading again is my guess.
IMHO