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Gold/Mining/Energy : William Resources - WIM-TSE -- Ignore unavailable to you. Want to Upgrade?

To: M. Merriam who wrote (1035)	5/11/1998 12:30:00 PM
From: EricVdP	Read Replies (1) \| Respond to of 1326

This restructuring is definitely positive for the company. It avoids a default and a bankruptcy and gives the company a good chance to survive until (presumably) gold prices move higher. The equity holders benefit the most, but the equity is still behind about US$122 million of debt (including the debentures) and it's hard for me to see how the assets are worth that much today. I think the equity is essentially a long term call option on gold. As for the debentures, the reduction in the conversion price has some value. Nonetheless, I'm somewhat surprised that the large holders were so willing to give up this year's interest in exchange. This tradeoff is probably better than incurring the costs of a reorganization, though. The yield to maturity is still pretty awesome if the company can generate enough value to make the debentures whole by Jan. 2002. One of the most interesting parts of the call was the mention of possible strategic partnerships. Does anyone have any idea about what form this might take?