RE: Positive RNS10 Dec 2021 10:59
Cash saved via 2 recent bond buybacks roughly equates to Brent having stayed at circa $85 for the recent and next offloads (2 offloads) - a nice way to look at things
CA will have persistently nagged HUR re bond buybacks. CA will continue
Today's RNS states HUR will continue to respond to 'inward bound offers' from BHs for early redemption - must have killed Maris& Chaffe to write that - but are slowly being backed into a non-moody corner. It is an open offer for BHs to surrender.
With next offload mid Jan + oil in AM by end Jan 2022, HUR free cash = HUR bond debt = 2nd milestone job done (1st milestone was winning June 21 court hearing)
Peeps write that HUR may/will require further escrow monies, eg, re AM new deal. True, and so? Any deal strengthens HUR;s stability & cash-production ability. Self evidently a positive not a negative. It's a nebulous argument, if used to disparage.
It is reasonable to expect more BHs to sell early - on open market today bonds -$93c in $ - if they can't steal company for peanuts, will prefer cash back to be able to do mischief elsewhere
HUR steering nicely into calmer, debt free, high production waters, making tax position & production like a golden goose to bigger buyers
Doomster derampers quiet this morning (won't waste energy) but will return, hanging arguments on black-swan possibility. So a question for them to ponder and answer. It is akin to Justice Zacaroli's priceless musing, ie (I paraphrase):- 'HUR BoD & Ad Hoc bondholder group argue that HUR is worthless and thus SHs are 'out of the money' therefore have no legal right to be heard in this court. This confuses me. If the company is indeed worthless, why is so much effort, and money (+$17 million) being expended to secure 95% of nothing?'
My question is simple:-
Why, if HUR is a 'dead man walking, basket case company' are bonds trading at circa -93c in $, ie approaching par, some 7 MONTHS ahead of July 2022 maturity?