RE: Must be something in the Horlicks19 Nov 2019 07:54
These so called green boxes are calling it right ES, why are you so bitter. If you knew anything about the market you would know there are bulls and bears, it’s how it works!
Short term or long term they can’t pay them down or meet any attached covenants. The roll over given by the syndicate is so they can sort out a solution to a problem that GMS themselves can’t get out of, they’re in a viscous spiral now. See what happens by the end of the year.
Was the market ever in love with aaog or was it just a selected few having a 6some? It’s been more or less a disaster from the ipo where the sp has been concerned. This, having nothing to do with any negative poster whatsoever. Could see a trading spike on licence news/snpc if it comes but the biggie is whether this drill is available in Q1 2020. Keep some funds spare in case it’s Q2 2020.
By the looks of it Seafox haven’t been quiet and GMS didn’t like it. I suppose $10m in cost savings is a start but it won’t make a dent in the debt, they can’t sell any workable assets to reduce it and they aren’t making enough fcf to pay it down. So the only other way is a d4e to achieve a longterm sustainable solution to the the balance sheet to free up some cash. It’s that or the lenders pull the plug then I’m sure Seafox will end up with some of the assets anyway.
Problem is all they are doing is working to pay the debt, all 400m of it on less revenue than before. Could be a big D4E coming up here after failure of covenants again.