From 10Q: As of May 1, 2015, we had approximately $114 million of remaining availability under our credit facility (excluding $1.6 million in letters of credit) based on the new commitment amount of $375.0 million
They burnt $14M in April. Presumed to burn $50M in Q2 total, resulting liquidity of $78M.
Depend upon how you understand Q2 liquidity at 120M. At the start or the end? They are entering Q2 with 128M liquidity, that is correct. My number was from the press release. Unless you think they are cash flow neutral even after CapEX.
As of 3/31, the liquidity is $375-$247=$128. Q1 burnt $50M and Q2 will burn another $50M due to CapEX and reduced vol. At the end of Q2, the liquidity at best will be at $80. Q3 will burn another 10M and revolver will reduce another 10%. That is the reason they need to restructure.
O, wind, if winter comes, can spring be far behind?
The problem is, if nobody dies, spring isn't coming.
The $120M liquidity can be going once they breach the covenant. Even if they managed to maintain the ratio, it is likely that $120M will be gone at the next review at the end of Oct.
While NG price can go upward of 3 within a few weeks, I don't see oil going back up soon. The NG has been consolidating for almost 6 years while oil is just getting started. If anything is going to save SFY, it is going to be gas in the next several month.
Thank you all. I will hold.
Based upon recent CHK transaction with FourPoint, the 30000bod should equate to more than $840M. Does that mean we should settle for at least 50 cents on the dollar?
Also, what is the best option now? sell at loss or hold on to them. I have all three bonds. Looks like you have a lot of experience, Thanks.
who are they trying to negotiate to? it is public traded and I don't expect anybody contact me. i would rather take 50% haircut for second lien for 2019 but I doubt they will be that generous. Your take?
You expect the recovery rate for all three bonds the same?