Post by
BigWillie on Jan 07, 2021 1:37am
going concern question
hi all. Reading Q3 report, in the note #2 at the end I read this:
As a result of the factors noted above, there are material uncertainties that may cast significant doubt on the ability of the Company to continue as a going concern and, accordingly, the appropriateness of the use of accounting principles applicable to a going concern entity. Such material uncertainties may include: satisfaction or waiver of all conditions precedent to the completion of the Recapitalization Transaction, customer credit risk, compliance with financial covenants in future periods, liquidity, capital structure, valuation of long-lived assets and inventory valuation.
I understand this related to situation existing prior to recapitalization. Naturally, I wonder whether "satisfaction...of all conditions preceding" has happened with completion of the recapitalization?
the other question is the amount of outstanding debt remaining after recapitalization. And yet another question, when is Q4 report due?
Comment by
HugeCrane on Jan 10, 2021 7:48pm
Calfrac still has $300 million in debt on the balance sheet after restructuring. Not sure what the interest charges would be, but I would be waiting to see what q1 revenues look like. My biggest concern is how much activity has to pick up for the re structured company to be able to operate from free cash flow. We're not out of the woods yet.