looks in real trouble, page-6

Great summary Pickem,

My understanding is that the Lancashire debt is "project" debt, that is non-recourse to GRD and tied up 100% to the Lancashire project. So this is not a worry other than if GRD's 50% ownership cannot be sold because no one wants to stump up hard cash for 50% of a highly leveraged high risk waste renewables business.

The debt of concern is ~$60M owing to Hastings June 2010, indeed carried over from the Global Renewables Ltd purchase. GRD has two assets to sell; Global Renewables Ltd or Minproc. Obviously GRD IS Minproc so that is not on and the Global Renewables might not be sellable for much.

Gotta be tuff to get re-finance for $60M when Minproc is heading into a potentially deep and dark resources downturn. How low can Minproc earnings go as project development stops dead? I have seen so many companies recently go to the wall when banks just say NO to refinance and the capital cannot be raised on market. Fire sales are made, hugely dilutionary placements or the banks come in.

I am not saying there is no value here just that the market can be savage on leveraged companies heading into questionable refinance situations. What looks like a cheap price can suddenly look expensive after the share price halves each weak for a month until raising equity capital becomes impossible. Enterprise value (market Cap $50M less net cash -$50M) is about $100M at the moment. Is 25c cheap or not??

Mmmmmmmm