Concordia Healthcare Corp. T.CXR.R

Why haven't they deferred Cinven payout?

[visionaryfool]

They have till September 30 to officially respond but if they are in such a cash crunch,would it make sense for them to defer and let the market know beforehand or wait till last possible day?

Asking a friend here.

[dannyd9]

Hi visionary; can you tell me how much the cinven payout is. cxr does have 200 million in cash and credit lines available

[visionaryfool]

OK So i responded with an indepth response but FK'ing stockhouse didn't post it... it got stuck in "servers are busy" busllshiat. Long story short, if they draw on credit line, IMHO, it'll be really bad for them. Currently there are no cov's to deal with but any slip-up and they could very well need to draw more than $60M on the line. Its more prudent to defer the Cinven

[PROtrading]

Danny, my buddy!  This isn't a penny stock.  Please go back to your "expertise"! ;-)  LOL Oh, oh... why do I always want to pick a fight with the SHtGang?  LOL  ;-) LOVE IT!

[LaticelnExile]

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[visionaryfool]

Whats you opinion on if they don't defer? Is that a positive sign? Knowing MT, he might be over playing his hand if he doesn't defer.

[dannyd9]

Thanks vision; Upon checking sedar, the amount payable is based on targets being reached to end of sept 2016. That means it will likely be october before we hear anything. Secondly, the maximum payout is 220 million if all targets are reached. So yes, this is pretty significant because even though they said in last conference call that they have the ability to pay it, the total debt will climb

[visionaryfool]

Yeah good point Danny. I guess its premature to jump to the payout if there is still a month left. Although I'm sure that now with 11 months gone, they have adaquate information on the performance targets so probably why they kept ~$144M cash on hand. They must be expecting to pay out. Yeah I hear ya. I think Cinven got out back in December when this thing hit its peak. I'm thinking

[LaticelnExile]

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