Important to remember the relationship between Bondholders and equity. If everything goes well, equity loves Bondholders because they provide a source of capital that can be junior to Banks and they get no capital uplift, just interest which varies according to risk. Bonds allow equity to avoid dilution.
Flip side is is everything goes pear shaped, equity losses out much more than the bonds. In a wind up equity gets nothing.
If oil was still over $100 you guys would be happy because you were keeping all the upside. You can't have your cake and eat it. Equity gets the upside, Bondholders get the protected if goes pear shaped.
So please don't gripe about 'evil' Bondholders. You rolled the dice and an unprecedented crash in oil has scuppered you.
April 2014 we issued the bonds $250 million. In March 2015 we issued shares for $40 million. Including all the oil that we pump every day where does it all go. With the increase in shaikan from 53% to 58% will we get back costs for that too.....?
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