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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (63950)	4/6/2000 10:27:00 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

FGH:$170M possible liquidity from non-core asset sales...better, not great news Expectations of new orders - ie: psoitive upturn in the Oil sector etc.... $1 B in non-energy related contracts will be awarded in next 2 qtrs industry-wide... they hope to get a significant share etc... (remember HLX's former backlog levels alone were $1 B+ were they not ?)...tax refund coming, yacht division sale will net approx $5.4 M & closes tomorrow...non core asset sales approx $90 M, tax refund $30 M, $28M for Rig Components - total $170M potential asset sales Has $25M current liquidity + the $5.4M closing tomorrow - JL would not directly answer a direct question on "how long can you operate at current liquidity" !?!?!?!?!?!? - they came off very poor on this imho !!!!!!!!! This is NOT how I would want this answered... continued...aint the net grande...

To: SliderOnTheBlack who wrote (63950)	4/6/2000 10:33:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

Slider, were you the first guy that ask a question on the FGH call? He was asking the hard questions... 3-4 people asking questions....I'm amazed there were so few. big

To: SliderOnTheBlack who wrote (63950)	4/6/2000 10:42:00 AM
From: BigBull	Read Replies (1) \| Respond to of 95453

Who cares! PGO be rockin'! ;o} <eom>

To: SliderOnTheBlack who wrote (63950)	4/6/2000 10:44:00 AM
From: S. maltophilia	Respond to of 95453

I'm not on the CC, hence this question: Is JL adding anything to this from the 10K? At December 31, 1999, the Company was not in compliance with the leverage ratio, the minimum fixed charge coverage ratio and the minimum net worth requirement. On March 28, 2000, the Company obtained a waiver of noncompliance with these requirements and an amendment to the New Credit Facility that among other things, amends the leverage ratio, the fixed charge coverage ratio, and minimum net worth requirement, and requires the commitment amount under the New Credit Facility to be reduced by 75% of the net proceeds of asset sales. The amendment changes the interest rate to the lender's base rate plus 2.00% per annum until the Company completes certain of its contracts. It is not anticipated that the Company will complete these contracts until the fourth quarter of 2001. In connection with the amendment, the Company is obligated to pay certain fees, including an annual commitment fee in an amount of 1.00% of the unused portion of the commitment. The Company believes that cash generated from operations, including the collection of recoverable income taxes, ($38.7 million at December 31, 1999), the settlement of certain recoverable contract claims, and funds available under the New Credit Facility will be sufficient to fund its requirements for working capital (including contract losses), capital expenditures, and other capital needs for at least the next 12 months and to remain in compliance with the new loan covenants. However, additional debt or equity financing or asset sales may be required if the 40 <PAGE> 41 Company's estimated costs on the Ocean Rig contracts and/or the Petrodrill contracts are materially higher than those utilized in preparing the financial statements at December 31,1999 or if the Company's level of business activity picks up considerably and the Company is unable to negotiate contract terms that provide for contract funding as costs are incurred. Although the Company believes that, under such circumstances, it would be able to obtain additional funding from these sources, there can be no assurance that funding from these sources will be available to the Company for these purposes or, if available, will be on terms satisfactory to the Company.