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re: Official Erin Energy (ERN) thread
Posted on 4/4/16 at 1:02 pm to Iowa Golfer
Posted on 4/4/16 at 1:02 pm to Iowa Golfer
quote:You're joking, right?
I understand the concern today about debt restructure.
it sounded like this could also be considered good news.
A company telling its bank it can't make its principal payment and asks to be given 90 days to come up with a revised repayment plan is NEVER good news.
It means the bank has likely classified the loan as non-performing and must add to its loan loss provision to cover an anticipated write off of part or all of the loan.
1
Posted on 4/4/16 at 6:37 pm to LSURussian
To be clear the rest of what I said that wasn't quoted:
"Or if not good news, maybe a better way to phrase it is not terrible news."
In this case it's not terrible news. It was expected. The debt was being serviced fine through the prepayment agreement with Glencore (not a small player). They ran into issues (export permitting, and an underwater deterioration as I understand it), and one of their banks, a smaller lender in terms of their debt, has decided to work with them.
In light the overall depressed selling price, it isn't unexpected, nor is it horrible. And due to their debt structure, isn't much of an issue right now. Although it could easily become an issue. That is true.
Again, I've indicated several times on here that this is a speculative play. And it is. Most of us already took our principal and some profit out a long time ago.
It is not a pump and dump on my part as you seemed to suggest several posts further back. It is a risky play on what could ultimately turn into a royalty company, which has become even more risky due to the current oil situation.
"Or if not good news, maybe a better way to phrase it is not terrible news."
In this case it's not terrible news. It was expected. The debt was being serviced fine through the prepayment agreement with Glencore (not a small player). They ran into issues (export permitting, and an underwater deterioration as I understand it), and one of their banks, a smaller lender in terms of their debt, has decided to work with them.
In light the overall depressed selling price, it isn't unexpected, nor is it horrible. And due to their debt structure, isn't much of an issue right now. Although it could easily become an issue. That is true.
Again, I've indicated several times on here that this is a speculative play. And it is. Most of us already took our principal and some profit out a long time ago.
It is not a pump and dump on my part as you seemed to suggest several posts further back. It is a risky play on what could ultimately turn into a royalty company, which has become even more risky due to the current oil situation.
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