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

To: Thomas P. Talbot who wrote (955)	4/26/1998 7:57:00 PM
From: Al Cern	Read Replies (1) \| Respond to of 1706

Not only is forward selling a double edged sword, but RYO can't afford to lock into contracts at present prices. They NEED $400 gold to survive. As far as the financing goes it appears that the subs are ready to agree to the increase in senior debt, in return for a very generous commitment fee. RYO it seems will get a respite from bankruptcy, but the financial situation which I have described in detail will remain. The subs who are negotiating this deal must believe that the combination of the commitment fee, and what they can get on the open market for their bonds, is their best option. It is certainly a faster way to get out than proceeding to bankruptcy. Personally I don't agree with the strategy but I also don't own the bonds. It appears that we will able to sit in the cheap seats for a while longer, to see what unfolds. Sincerely, Al Cern