Oil dropping like a rock again...SSN near US$0.60...yikes, page-13

Now you're worried about SSN not being able to make a $4M repayment???

What about 2yrs ago when it was in all sorts of bother and a band of brothers wasted a lot of energy (pun intended) inflating the stocks prospects. Shouldn't it be surfing a "wolf wave" or something to new highs?

They don't have the $4M and they certainly don't have the other $20M either. They have had the money to repay those loans for years ... why be concerned now?

Is the prospect of default a concern now but was not previously?

That sword has been hanging over SSN's head for longer than 2 years. SSN's prospects today are vastly superior than what they were 2 years ago. What's changed (and sorry for LT holders) is that the share price is reflective of both its prospects as a going concern and its prospects of being able to recover if given the capital to continue to operate.

OAS is the junior lender. MOB holds all the aces and there are no jokers in the deck (at the table maybe). OAS putting SSN into default does not get them their money back. Cross-default will occur and OAS will rank behind MOB. You think OAS will pay MOB $20M to get FB back again? Would they pay $15M to get it back again (so I guess that's a zero sum ... received $15 and then paid $15) and MOB walks away $5M poorer?

No crystal ball here ... but SSN has been in this position ever since it agreed to buy FB and sell NS but at least they have a chance at recovering. Present the right recover plan (which I think they have), execute on the plan (which they are trying to but need to be better at) and SSN will generate the earnings needed to satisfy credit facility lenders.

Wildcard is a DIP loan (payoff credit facility), wipe out the existing equity, swap DIP for new equity in newco and term out OAS loan. Good news is SSN too small to get much attention. Bad news is its small enough for a high net worth private (family?) to take a run.

But why worry ... TB's out there trying to talk up their prospects.