RE: Non-recourse debt25 Aug 2020 21:07
Pecten,
I haven’t looked at the specific that you quote but a non-recourse debt is normally against a specific asset. If the debt defaults you get that asset. If the asset is less than the debt tough! If the asset is more than the debt, happy days!
In O&G it would typically be less tangible assets, say a license area as opposed to a more tangible bricks and mortar asset, or a producing asset or like you say cash. The administrator would still define a payment pecking order. Them, debtors like banks and non recourse debt holders, then Senior note holders warrants etc and usually FA left for shareholders. This is why it is important to see the BoD with skin in the game. They win or loose the same as us plebs! Well done AK!
You can google this stuff, apologies, Rioja may be clouding my tangible memory!
Anyways, Centre stage SJ. I was one of your biggest fans at NPE, you gotta a nose for HC’s that’s for sure. I truly hope all is well as I am perplexed why you are lightweight here. If all is well let’s see a conviction buy. If not so be it. You have my trust that you would if you could.
I like many have been around to see many things/situations change. Sometimes one has to suspend judgement. All said and after all my harsh criticisms. I think AK has come through this now and grown into it. His conviction buy aligns with us plebs. I think he has noted the comments from the likes of agadem and hopefully realises that there is a thus far untapped invest base here willing to help motor this sp forward for the long term especially from these lowly levels.
Sentiment can change very quickly with political commitments, new customers, increased forward sales, PSA’s etc. Then suddenly you find those that wanted out want in and those that were waiting buy buy. 366 trades today says sentiment is changing.
Imo those buying now are ahead of the the recovery. The TA is pointing for a decent bounce and a climb back up to 15p area.
Trek
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