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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (30224)	2/25/2004 3:44:33 AM
From: energyplay	Read Replies (1) \| Respond to of 206093

"Big question is how long can EP keep trying to hide their real problems, which are the debt and interest payments? To get past this year I believe they have to do one of two things. They need a debt/equity offering and/or another round of asset sales. This will only postpone the day of reckoning." Bankers may delude themselves, or want to postpone BK for career reasons or to push the write downs into next year so they won't take a hot to capitla adequacy requiremnets. So they could add a little more cash, and that with asset sales and possbile cram downs to bond holders could keep EP around until 2005. This might be a good strategy if there is a possiblity of a blow up in Venezuela, the Mideast, etc. resulting in higher energy prices - EP assets could bring mcuh more in 2005 than this summer, so the banks and other creditors would get more from the BK. Even the drive of China growth helps raise prices.