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Gold/Mining/Energy : Friede Goldman Halter (FGH) -- Ignore unavailable to you. Want to Upgrade?

To: Adelantado who wrote (95)	10/27/2000 9:33:02 PM
From: Mark Adams	Read Replies (1) \| Respond to of 177

They traded a 41m credit facility for a 40m term loan and 100m credit facility. That reads to me as liquidity, in a time when lack of liquidity might force chapter 11. Read another way, they decided against taking on debt at unusually high junk rates, only to find credit through more conventional facilities at a later date. Yeah, more debt isn't the same as great earnings and cash flow resulting retiring debt, but living to play another day gives them a greater chance of developing this potentially positive outcome. Your reference to tripling debt isn't quite accurate- an additional 100 million credit facility, if fully used, represents less than a 33% increase in total debt based on 10Q info from August 2000. The 10Q reports total debt of 260m, Current Assets of 363m and Current Liabilties of 289m. It also offsets an increase in equity resulting from FGH share offering at around $8 not so long ago.