Likely the oil prices will stay down a long time. Iran will soon flood the market with cheap oil and gas.
There are rumors that the employees are helping themself to the cash register
they can't pay their $140B debt..and looks like the local currency brl is becoming almost worthless..
Greedy foreign speculators will lose their investment and decision making in PetroBras will be transferred to the Communist Workers Party who present the majority of the Brazilian people. What else :D
actually their fleet is worth only about $188M. The book value is inflated 2x and they should make impairment adjustment.
Equity $188M - debt $156 + cash $28 = $51M
if you deduct the preferred equity $25M then you get what is left of the common equity ($35M). The equity is around $1,12 per share. Imo the stock is now trading at near bottom. In 2015 there will be additional $0,13 loss.
Short term a very dangerous hold imo. However I could buy common after the swap. A lot of positive catalysts, tax assets win, no NPAs etc.
The common share price stays above $5 so likely the swap offer is at this price. IF they go to the CH11 there will be no recovery to old common and new common shares will be issued. The current holders of the common shares lose all of their investment. Hopefully they do not need CH11 but unfortunately this is still a possibility if the FDIC did not approve the performing assets sale. GL.
Likely there has been a leak. Maybe the biggest preferred holders have been asked if they agree on the swap. The articles in the newspapers also indicate that some inside info has leaked. Current common with the equity worth zero and the market cap of $35M is not a factor if they need to save the bank. CH11 at the holdco level can last just 2 months. All imo, no position.
Yes, I think *.pk suffix means the pink sheets. But in what scenario the preferred issues would go to pink sheets? One article published recently said preferred to common swap is imminent. This could mean the us mainland assets sale went south and they need to urgently issue 40M common shares #$%$ to save the bank.
PRGN may be been required to sell their stake in TEU as a part of the refinancing deals with the banks. I am tempted to buy more at these levels.
First R/S 10:1 Then $10M PIPE @ $4 should give that someone 40% additional ownership.
"..Furthermore, as of September 30, 2014, we were in compliance with the covenants contained in our loan agreements, with the exception of the Market Value Adjusted Net Worth covenant contained in one of our loan agreements as a result of the expiration of waiver on April 1, 2014, which will be cured upon signing of the new loan mentioned above. In addition, we are still in discussions with one remaining lender to modify our debt amortization profile and waive certain covenants, which have taken longer than expected. In anticipation of the final outcome, we have delayed the partial funding of the retention account we maintain with the lender, which is considered a breach of the loan agreement and the failure to remedy the breach constitutes an event of default under their interpretation of the loan agreement. We have been notified by the lender in question of such breach, but no action has been taken by the lender to date. In accordance with U.S. GAAP, unless we receive waivers for a period of more than one year after the balance sheet date or the loans are refinanced prior to the issuance of the consolidated financial statements, our total debt will be required to be presented as current. Even though to date no action has been taken by the lender, those breaches constitute an event of default and as a result of the cross default provisions included in our loan agreements, may result in the lenders accelerating or demanding immediate repayment of their loans. We believe that the lender will not demand payment of the loan before its scheduled maturity, provided that we continue to work towards an amicable solution. We have no borrowing capacity under our existing loan facilities and no capital commitments. We anticipate that our current financial resources, together with cash generated from operations will be sufficient to fund the operations of our current fleet, including our working capital requirements, for the next 12 months, assuming that the debt will not be accelerated by our lenders.
Barron's has EPS estimate for 2015 -$0,13 and FY 2016 -$0,05-$0,20 so imo this stock can trade anywhere between $0,55 - $2,50. The NAV is around $1,75 and if you discount the preferred equity $25M the common equity is around $30M or $0,96 per share. The only concern is R/S if the price stays under $1 but as the stock is bottomed here even R/S should not be any problem.