Renegade Petroleum Ltd V.RPL

debt

[deisman03]

I was pointing out what could be a wors case scenario.

 

If they cut the divy, the share price WILL drop. A divy cut will be the catalyst for a lot of shareholders with large amounts of shares to dump and cut their losses.

 

Small time investors, like myself, 15,000 shares, don't move share price one way or the other for more than a few secoconds at most.

 

Just look back a month and see what happened when high debt along with so called high divi payments were deemed to be unsustainable by the shareholders with the huge blocks. They tanked the stock price by 75%.

Another 10-15% from the top share price is not unforseeable if things don't turn around for them soon.

 

This is all conjecture. I don't have enough information available to me to tell the whole story. The fact that they brought in some pitch hitters in the 8th inning, tells a strange story, that only those with crystal balls or inside information know the gist of.

 

I am by no means advocating the lenders calling in their demand loans. I am only saying that they will, if the share price falls below a certain point. It would be a poor business move on their part if they didn't try to recover as much of their loan as possible when a debtor can't repay the loan any other way.

 

The end of the month, will tell the tale. I also don't expect any report from the BOD until the loan schedules have been cleaned up.

[07wildwood]

diesman. Where do you get the idea that the banks call loans based on falling or fallen share price? Does not cashflow and debt servicing  count for anything? Renegades loan payment amounts are by no means overwhelming. Quit scare mongering. Take 7700 boe/day with sweet light crude prices of midrange pricing at $110,000/bbl gives you 847 mil. of market value. Check what Whitecap just paid for

[deisman03]

From personal experience. Banks and other lenders do not like to call in demand loans. Most corporations that make loans these days, take out demand loans.   No, I'm not a banker or a loans agent.   Of the last three corportations I worked for, two were shut down, even though they had decent cash flow. One owner was Canadian, run by a family and the third generation owners ran

[07wildwood]

Here's a link https://www.beatingtheindex.com/second-wave-petroleum-the-end/ This shows co's that are truely close to BK. and had too much debt. Check the valuation metrics and apply them to RPL. There is way more left after the banks get paid back. You could sell the PWT assets for say 396 mil(Discounted 5% from the purchase price for the q1 workovers, and closing adjustments) and repay

[amp7]

IMHO, debt becomes an issue for banks when cash flow looks iffy going forward. The general economic environment, the company’s ability to get product to market, the size of the debt etc. all factor into a company’s viability going forward and a bank’s decision on whether or not to continue it’s financial support of a company. In a nut shell, management needs to execute and reduce the company’s