Lightstream Resources Ltd. LSTMF

Who is going to lose more?

[Silly2016]

Sometimes we need to think things in other way- if there is no deal and LTS is going to bankruptcy, who is losing more? Of course shareholders are getting zero. How about bonds secured or unsecured? So I believe at the end something will happen. It is just how favor will be on the shareholder side but at least won't be 0.1

only my thought

[emmitt]

If there is no deal shareholders will get 0, debt holders will do better. Debt holders wil get the entire pie and leave shareholders with 0. Shareholders should want this deal, at least they will get something.

[darkstream]

-the unsecured debt holders will also get zero if this deal falls apart -the secured debt would not even break even should the properties go to auction in this environment -it is all based on a hope and a prayer that prices recover? -as of July 15 LTS Credit Facility has gone from a Billion+ to zero -this latest court process most likely drag on into the New Year -consider why LTS has kept $30M in

[blade86ca]

darkstream........I always did wonder about that in back of my mind , they said they got money in bank now to make interest payments yet they aren't making any .......... I can't believe how many companies John Wright, Correy Ruttan and Kenneth Mckannon are running at the same time........ aside from lightstream , they are running 2 companies called Alvopetro and touchstone exploration

[Silly2016]

Yes they are going to get the whole pie but with much less value and the progress will be out of their control. I feel at the end there will be a deal with some modifications on the current proposal. But in the SH, any body has knowledge what is the true value of LTS assets?

[orlandofl]

Probably around $1.5B, but no one wants to take on $1.5B in debt so they would need to have it converted to stock and wipe out debt.  I think an offer would have to be a stock transaction right now.

[PeterWright]

I'm thinking closer to 1.3B Orlando. Declines are accelerating the problems with LTS. Production is dropping. I haven't calculated since last month, but I think 1.3B is approx. current value. Still more debt then assets.

[orlandofl]

Wright was thinking that shareholders and unsecured bond holders would grudgingly go for it - if they don't they might get 0.  He mentionded that unsecured debt holders - many of them bought debt at much lower prices - some higher but lots of at lower prices.  He thinks there is a chance that they'll go along with it as they might not get anything with an auction of the company.