Hi all,I had a little dip into BLY the past couple of days....

Hi all,

I had a little dip into BLY the past couple of days. Scary debt levels, but also a massive share price tank, with what looks like bottoming action in the past couple of months. They are priced for bankruptcy, but are the biggest contract driller in the world (?) and have more than a year before they need to refinance. Seem to be well within their convenants, so no prospect that the debts would be callable before 2010.

Having said that, unless something unexpected happens, I think I'll treat them a bit like an option, with a time decay on the share price as they come up towards their debt refinancing next year. That truly is one scary pile of debt their carrying!