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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bidder who wrote (895)	4/14/1998 10:28:00 AM
From: scott	Read Replies (1) \| Respond to of 1706

actually, the company has no choice given their complete lack of liquidity. i understand that they will not be able to meet payroll past april 25 unless this deal with trilon closes. furthermore, to close the deal, they need consent from the senior note holders whom have repeatily walked away from the negotiation table. they r playing hardball and will probably want at least 10 to 20% of the company. such a dilution does not need shareholder approval and does not seem to be priced in the market. just do the math. the bonds trade at 75 cents on the dollar which translates to $186MM CAD in value. so why does the equity market cap (222MM) exceed that of debt when the debt is senior and trades at 75 cents on the dollar? doesn't make sense except for arbs who buy the debt and short the equity.