Booster, Sharky

Agree with your assessment of the situation.

Bitumen price has to go up above CND$30/bbl for CLL to survive.

Booster, you do not have to wait for 2008 FS to see the Covenants for the $200m Credit Facilities.

2008 Covenants (see my post) for Revolving Credit Facilities are in the Q3/2008 report and IMO will be roll over to 2009 or renegotiate with the banks.

Additional 2009 Covenants for Revolving Credit Facilities were discussed at the last conference and confirm in the email by DG:

1.5 X convergence ratio for 2009 EBITDA to consolidated interest expenses.

(CLL 2009 Earnings before income tax and DA have to be well above $100M)

This one for sure will have to be renegotiate as well for the $200M to be available to CLL for Algar project.

I may be wrong but IMO the Covenants forced the management and board of directors to postponed the Algar construction. I do not think they did this in the free will.

Like you said :one day at a time.