JXSCUL, you are right they have said that they are talking to other banks about refinancing in a press release but they preceeded that statement by saying that all is right with GSJBW. A bit of having your cake and eating it too.
You are right that they are in a poor position but remember that we have not seen the docs any of us and we don't know how the structure is set. If they are forced into a refi period after Mar 9th (that is the date according to an annual report) then there will most likely be a step up in interest rate as incentive to refi. After that it is anybodies guess. Remember GS JBW got virtually nothing for this facility as their $5mil options are about as underwater as a rock in the Marianas Trench. Maybe they will extend for 6 months but only with security. Then six months down the road, or if PNA goes under, they can be protected. That is what I would at least negotiate. But I am just a rube on HC so what do I know.
The other option is pay back say $40m, secure the remaining and go out six months. Win, Win - say PNA do you need a negotiator?
PNA Price at posting:
10.9¢ Sentiment: ST Buy Disclosure: Held
