RE: Tallin have pulled the rug from under Cuda...6 Nov 2021 21:16
Tallin want CAD$70m by 15/11/21 or will move for bankruptcy.
Do COPL want to buy a) the company, or b) BF assets?
Seems more likely b), though possible tax advantage (as per @dougb189) noted.
If a), can COPL then repay the $70m? Would the Cuda shareholders actually agree to a nominal price anyway (as this is really all about the debt)? Might force insolvency anyway (maybe just for the hell of it)?
If b), can Cuda repay the $70m debt with proceeds of the asset sale?
Otherwise, if the price offered for the assets is less, are the lenders prepared to take a loss?
Are there any other prospective buyers for either the company (Cuda) or the assets? And if so are they likely to offer more?
Note Atomic PipeCo own the pipeline infrastructure for BF, so any other buyer will have to deal with COPL.
Time for a deal?
In the immortal words of ‘Crapgame’ “Then make a deal”, says ‘Big Joe’ “what kind of deal?”, retorts ‘Crapgame’ “a deal deal, business is business, right?”
We are in America, ‘business is business, right?
GLA