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To: The Ox who wrote (3513)	6/18/2014 8:25:24 AM
From: ItsAllCyclical	Read Replies (1) of 8288

CBI responds, but more or less how you predicted.... "We disagree with report, earnings are on track". I didn't read everything in the report, but a good chunk. From what I can gather (not being an accountant) I can't see CBI having debt issues anytime in the near term. Report says they will have to write down good will and therefore be in violation of covenants and thus default. They don't have any big chunk of debt due all at once, most is spread out thru 2018. I'm pretty sure they control the timing of any write downs. Contracts related to write downs are long term in nature and the specific ones in the report probably won't be known till 2017+. As such the report may raise some red flags long term, but in the short term I think it's mostly an opportunistic short slam. Between now and 2017 is quite a bit of time if CBI wants to further strengthen it's balance sheet if it sees losses from old Shaw contracts. Buffet still owns 8.8% so again would be surprised if his accountants are that sloppy.

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