in my view - when co's borrow or refi - they are "forced" to pay out hedges, pay out debt, get new debt, and enter into new hedges .......
I will chk the terms as per last statements .....
as you say - there is a min amt of cash to be held -
if the preff can be paid out, I suspect it would be in any new cap raise .......
as you know - most facilities are circa 60-65% of PDP at fwd curva, at 10% disc rate .......
this is "why" they seem to be "waiting" for any positive news from grieve (so tha asset pool gets bigger") .......imho - that's the reason for the delay......otherwise its a 2 for 1 at big discount to get it away (or list in the usa and give a big% to preff equity .......)
rgds
V_H
ELK Price at posting:
7.0¢ Sentiment: None Disclosure: Not Held
