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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: elmatador who wrote (200840)4/10/2020 10:33:47 AM
From: E_K_S  Read Replies (1) of 206085
 
I wonder if part of the stimulus deal, Feds may/could replace loans w/ Federal guarantee loans that include some equity kicker to the United States? Sort of Nationalizing a portion of the interests in these domestic shale wells. There could be workouts and/or Buy-Ins (by larger better capitalized companies) so it all in the details if offered.

I am not sure if the Oil drillers will ever learn how to control their debt since it's been the nature of the boom/bust cycles to see the marginal producers just go BK.

If the Feds decide to go down this path of backstopping some of this debt, they better be sure of an appropriate exit strategy for the marginal producers so the tax payer does not get stuck w/ the worthless debt.

EKS
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