Full disclosure: I personally have a speculative put position on the company.
Press release:
Beat on revenue and earnings of $667 million and $118 million respectively, EBITDA of $354 million.
However the stock is down north of 13% in pre-market trading, likely due to the following excerpt regarding their ongoing attempts at debt restructuring:
As previously disclosed, we have been engaged in extensive discussions with our secured lenders and potential new money investors, including Hemen Holdings Ltd., regarding the terms of a comprehensive restructuring. These discussions have also included an ad hoc committee of bondholders. While the ad hoc committee of bondholders is not presently restricted, they have indicated a willingness to become restricted again in the future if appropriate. The key goals of the Company's restructuring continue to be building a bridge to a recovery and achieving a sustainable capital structure.
We currently believe that material additional amendments to the terms of the proposed bank amendments will be necessary to raise the required new capital. Feedback from certain stakeholders and potential new money providers also indicate that a comprehensive and consensual agreement will likely require conversion of our bonds to equity. Under such circumstances, the new capital raise and any resulting debt conversion would likely result in substantial dilution to current shareholders and potential losses for other financial stakeholders.
Discussions with the banks, potential new money investors, the advisers to the ad hoc committee of bondholders and Hemen Holdings Ltd. continue. Given timing, however, it will be challenging for the Company to finalize a fully consensual agreement before 30 April 2017, which is the maturity date of the West Eminence facility and also a milestone under the bank facility amendments entered into in April 2016.
Although an extension of these and other dates is possible with the requisite lender consents, we may be unable to obtain an extension on terms acceptable to the Company. In the event a consensual restructuring agreement is not concluded or an agreement to an extension is not reached, we are also preparing various contingency plans, including potential schemes of arrangement or chapter 11 proceedings.
Submitted February 28, 2017 at 07:02AM by ObservationalHumor http://ift.tt/2mzILGa
