CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

Selling North Vancouver not a bad idea

[noble13]

Selling the North Vancouver site isn't really a bad idea.  They can get a good price for it.  Removing the liability of a chlorine plant in the middle of a very highly populated area could be a good thing.  Concentrating on lower risk chemicals like chlorate in rural areas is a much safer proposition.  Brandon and Brazil are both great facilities and they will do well.

[BlueCollar51]

noble13; Selling the North Vancouver facility is a “band aid” solution to shore up the balance sheet a bit.   The problem is NATO. There is nothing to be gained by rehashing past managerial misdeeds under the leadership of the FORMER CEO. It is what it is. The collapse of the Oil market has made a bad situation incredibly worse. That can’t be blamed on the past and or present management

[Calgaryrider]

Don't forget that selling NATO for $100M (or whatever) also removes the $20-50M negative cash flow this thing is likely to generate in 2015 and as long as oil (and the spread) stays low.  I say $20M or more based on the fact that they were cash flow negative to the tune of $4M just in Q4 at NATO and it is expected to get worse before it gets better.  The bottom of the

[BlueCollar51]

Calgaryrider; I don’t entirely disagree with you. On the Whistler presentation Doug Wonnacott said that the strategy was to not aggressively contract NATO so that it would remain attractive to producers that would want the capacity for themselves. Clearly that hasn’t worked and the consequence was the terrible Q4 result. If the strategy isn’t working the strategy needs to change.   NATO is