Sonde Resources Corp
Exploration and production of oil and natural gas.
Message: For What It Is Worth
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Pothole Dodger posted the following on the Investor Village Board concerning SNG's financing. Take it for what it is worth to you:
"If one wanted to play "worst case scenerios", he could look to SNG's Credit Facility. As of Sept. 30, 2008, SNG's borrowing base under that facility was $45 million and they had over $43 million of that drawn. The borrowing base is redetermined annually. I don't know the date of that redetermination, but it's quite possible it has happened already. If it has, it almost certainly is now less than outstanding debt, and a repayment by SNG would be required. Also, last year the lender had notified SNG that it intended to end the facility and SNG disclosed that they were looking or an alternate lender. They've never announced they found one.
Is it possible that this move by BG is to protect themselves from either a) SNG diverting cash to pay off debt and not being able to fund their cost on 5c, or b) funding 5c and filing BK to protect their assets from their lender (the Credit Facility is backed by essentially all of SNG's assets), or c) both of the above? Is this a move by BG to insure that 45% of the interest in 5c doesn't get tied up in bankruptcy court? I don't know. Wish I did."
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