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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: tdl4138 who wrote (45027)	5/19/1999 4:06:00 PM
From: IndioBlues	Respond to of 95453

<FLC> No, your questions are good ones. But a shrewd buyer could come along and offer to purchase subject to successful renegotiation of the debt. If I'm a bondholder, I have to consider whether I am better off with a higher probability of payback (albeit at a lower rate or less attrative terms)or squeezing what I can out of a lengthy and expensive insolvency action. I'm not suggesting FLC is looking into Ch. 11, but its liquidity "challenges" are well known. I'm rooting like crazy for FLC to survive but it is about out of options if rig utilization doesn't pick up quick. This ain't a play for sissies <g>.

To: tdl4138 who wrote (45027)	5/19/1999 5:55:00 PM
From: Brent Hogenson	Read Replies (3) \| Respond to of 95453

FLC had 545 million in cash on 3/31/99. They have enough $$$'s to float them till the end of the year. FLC has the largest fleet of both shallow and deep water rigs. They also have the largest amount of idle capacity waiting for the gas drilling to begin. Steven Webster (FLC's CEO) publicly stated that FLC could earn $4 per share in a "normal market". During the last Conference Call, the CFO stated that EBITDA would be 2 billion in a normal market and 2.5 billion in a market like 1997. Do the math, they could pay their debt off in about 18 months. FLC has the most upside potential percentage wise of all the drillers. IMO things should start getting real interesting around mid July for oil and around September for gas.