Thanks for your reply. I don't think its incorrect. But I raise it as it is confusing. It's not at all unusual to see BB (all or parts thereof) become term loans in the final year because of the Banking Syndicate becoming concerned about repayment. So lets say it was $18M drawn. Becomes a 3 term loan and say 10% simple interest. To me that is $6M of principal + $1.8M interest pa now as a current liability (say $1.95M/Qtr). But the agreement excludes this obligation and any renewal or extension of this or any other loan. I've read that so many times that it becomes fuzzier with each reading. Why would the lender want to exclude that - its part of their safety net. Flys in the face of what many companies have had to do with the loans.
Anyway good to get an informed 2nd opinion.
Whether its stressed or not I leave to the multiple - and 3.5x EBITDAX is a popular canary test. Low oil is the cause of that as clearly SSN is getting the cost part under control but remains exposed because of minimal hedges.
I see now how you are looking a production growth. I'm looking at sequential growth primarily and depicted by slide 37.
Also on the "Liquidity" aspect, if Receivables are being counted (as in prior Qtr sales) shouldn't that be netted out against Payables to keep the proper perspective? I know you're using Slide 34 and it may well have netted it out (but makes no comment either way).
Regards
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