Ok ... 1. you have to pay back the money you borrowed 2. when the security (collateral) you gave to the bank drops in value, they want some of their loan money back now.
tt2000 - You've turned decidedly bearish - event of default 2 days away
Whats the worst case scenario? IMO, if the banking syndicate puts up a price deck along the "mean post covid" red line from earlier that could wipe out the value of PUD reserves. It's possible the PV9 might only be ~$400 (or even less). That means Debt can only total ~$270M ... and that's a big problem when LTD is circa $380M now. That gap is too wide for SNDE to fill.
I expressed an opinion that PVAC would be a logical suitor on a "merger of equals" basis ... i.e. no premium to SNDE stockholder
If PVAC buys SNDE for its EV, equity owners are swapping their 6.88M shares of SNDE @ $2.80/sh worth $18M for about 2.35M PVAC shares worth $18M ... 1 SNDE share for 0.362 PVAC share
Not pretty but doable for PVAC ... they are planning on some balance sheet restructuring anyway so they can figure out the best way to refinance theirs and SNDE Notes into a suitable package along with a BB that isn't overleveraged.
I want to see what rabbit is going to be pulled out of the hat.
SEA Price at posting:
16.5¢ Sentiment: None Disclosure: Held
