Lightstream Resources Ltd. LSTMF

looks headed for one of two outcomes

[uograd]

Of course the cryptic message can be read in many different ways but here is my take.

I don't see why the debt guys would want to convert to equity so I think that scenario is unlikely.  They want their cash or want to get out of dodge and move on.

So I see things going one of two ways.  Either there will be a lifeline buyer from China probably after some of the existing assets are sold anyways so the shareholder will vote on the deal like Long Run or they fold their tent on July 16 and this thing goes to zero.

If someone local was going to buy a whack of assets ala like what happened to Penn West that would have happened by now.

Cresent Point are holding all the cards and seem more likely to buy the assets out of recievership.

[alertmeipp]

the unsecured bond trading at 5 cents on a dollar, total market value is  20m , they will likely end up with nothing if LTS files. so they do have incentive to drag this one. if oil recovers, the will likely get more than 20m from the equity portion.

[Manthebull]

May I know where you seen the $5 cents on a dollar for the trading price regarding bonds?

[orlandofl]

I think they could still sell assets, I agree that debt holders aren't going to wipe out all debt and go with equity - they aren't typically risk takers although stock price would shoot up a lot.  I do see an opportunity to restructure debt and offering stock options or stock as a part of the deal, but I don't see debt going away - some kind of restructure is possible.