DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

DA defence valuation & other asset valuation

[sculpin2]

Would like to get a good read on how discounted all of the heli and other assets would be in a restructuring.

The transfer of $60mm of secured debt out of for 74% of the equity of DADS will at least lower the amount of secured ahead of the DB's but at what price was this done - i.e. did they shift 100% of book value of assets over to Clairvest or was it more than book paid for the PP&E?

As well, how much is the remaining 26% of DADS worth with the new contract - is it $20mm or now much more $40mm - transfer of this could get rid of substantially more secured debt hopefully at a high multiple of book.

Therefore the remaining debt would be quite a bit less than the amount of book PP&E on the books from Great Slave, Tindi etc..

Anyone have an idea? 

[Alejaho]

I don't know the valuations of other assets under the DA umbrella, however it is highly suspect that clairvest obtained this conversion refinancing on DA Defense shares only a few weeks prior to DAD's announcement of the billion dollar contract. Even when the 60m of secured debt is removed from the parent's books, at ten percent interest that saves 6m a year whereas the parent is