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Gold/Mining/Energy : Repap (RPAPF) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Latchum who wrote (219)	8/6/1998 6:20:00 PM
From: naber	Read Replies (1) \| Respond to of 485

Keep in mind that , as daunting as that debtload seems... it is better than it was before the "firesale"....Repap as we know it is but a shadow of its former self. They have sold assets to pay down debt and , overall... despite the corresponding reduction in the company's book value ( inevitable result of selling off assets )the picture, it seems to me.. is much brighter. They are a smaller company on the way to better profitability.

To: Dennis Latchum who wrote (219)	8/10/1998 3:29:00 PM
From: scott	Read Replies (2) \| Respond to of 485

they have the following capital structure: first mortgage bonds - 9% - $200 US first mortgage bonds - FRN - $120 US second mortgage bonds - 10.625 - $350 US bank loan - revolver $97 CAD Convert- owned by enron $45 US total, @1.50 CAD/USD = $1.170 billion Canadian!!! the mill is worth between 1.2 and 1.4 which given they have 740 million shares o/s, this translates to a market value of their equity to be 4 cents to 31 c$ cents a share. as one can see with the huge amount of debt, this equity is highly levered to the price of the mill. therefore, the current market price is not out of line. i have used market transactions such as blandin and dryden as value benchmarks. imho scott