Why so much chapter 11 talk? I have no position any longer in ENE, but I still wonder why noone is giving this company any chance to avoid chapter 11?
First of all, all creditors would prefer to see ENE survive, so even as the loans are called in because of bond status the banks could still hold off for some time giving ENE a chance to pick its head up.
Secondly, my sources tell me ENE had about 3 -4 billion cash as of wendsday, and could be larger as we speak.
Thirdly, the amount of the notes being called are 3.5 billion.
Fourth, Dynergy does not hold the option on the NGP, its actually a 1.5 Billion note from CTX, and ENE has the right to pay it back and regain ownership in that asset.
Fifth, ENE can perhaps come out of this as a leaner, and meaner company. They donot want to wipe out SHREHOLDERS and EMPLYESS!
Sixth, ENE still has 40-60 BILLION is assets, why not sell some at .50 on the dollat, get some extensions on notes, and restructure company FROM WITHIN!! |
