Tim Seymour on "Fast Money" mentioned WLT may soon violate some debt covenants that would force the firm to raise equity, hence the constant declines in the stock. Anyone familiar with the specifics of those pesky covenants?
1. Seymour is a #$%$ that will say anything to make a buck and he doesnt know jack (possible)
2. There are no debt covenants that would ever force an equity raise (doubtful)
3. There are such covenants but not breached yet (if so when would they be?)
You folks better start doing some DD. WLT is burning through cash. With the last two debt offerings they only have $236 million left. They have another $324 million that they can borrow which gives them $560 million in liquidity. When it is gone can you say secondary because every debt offering is pushing WLT closer to BK.
It's total BS, and is why the shorts have had control. the company has specifically said they have plenty of liquidity and do not need to raise capital. and they actually said on today's earnings call that even if met prices stay here or are lower, they expect to be cash flow positive this year.
Maybe some kind of debt to equity ratio. As of last week there were 16.5 million shares short. Plenty of cash. The company had. Really good outlook. All we need is for prices to tick up and the shorts will run for the hills. But, for now they rule.