Ann: Trading Halt, page-69

I'm with Ron on this one ... raising equity to repay the debt is way more than 100% of our current market cap.

Back to Mac Bank for a moment. All secured credit facilities have "normal course financial covenants"

It would be "unwise" to think that OEL's Credit Facility is not subject to normal course financial covenants the most common for a P&I term loan being IMO

1. Net Debt to EBITDA ratio ... considered distress if greater than 3 to 1 (My guess here is we are in the 2.5 to 3 range)
2. Debt Service Coverage Ratio of greater than say 1.5 to 1
3. Debt to Equity ratio (these are balance sheet items not market) of no more than 1 to 1

Working backwards
(1) Debt = $22M therefore we require at least $7.35M of EBITDAX .... can we maintain that?
(by my rough calcs its a Fail on TTM basis and Pass on FTM basis if its 3:1 and a Fail if 2.5:1)

2. Debt Service FTM ~ $7.5M and Net Operating Income FTM ~ $16M .... easy Pass

3. Book Equity ~$35M (at the HY and assuming no impairment to be recorded in Jun'20) therefore easy Pass

What skeleton is being outed that required this CR.

If there is a link to Petra Capital here I am going to be pissed!