Precisely - an oil company in early stages of operations must have debt and debt can and should be remortgaged. This is all about a small group that lost the court case trying to win the asset by foul means - its obvious no!
Where is this notion coming from that GKP , an Oil producer producing 40k bopd need to be debt free ? . A large proportion of the debt needs to be cleared ( KRG ARE YOU LISTENING YOU OWE THE COMPANY $$$ )
ENQ owed something like 1.5 billion not long ago but their mkt cap is nigh on 300 million with production similar to GKP . Tullow have multi million $ debts. Shaikan can produce for decades so any hard ball by Bondholders should be viewed as asset smash and grab.
People's investment portfolios are tailored to their personal strategy. If there was a dilution of 80% I would still be up on my investment once GKP sp gets to 38 pence per share (having averaged down to 37 pence) which would equate to £1.90 back in February 2014 pre dilution and debt fears which has brought it down to 5 pence. I still believe the old share price of £2 per share is a serious undervaluation of GKP assets, which at a dilution of 80% equates to 40 pence (thus I'm in profit) Unless GKP goes bankrupt which i seriously doubt and happy to take a risk on? Why on earth should I sell? Please explain your rhamboling comments and your premises to explain them. I wont lose unless GKP goes bust....which I dont believe will happen and fortunately for me I could afford if it did so happy to take the risk.
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