Author Topic: FELP - Foresight Energy  (Read 299034 times)

sampr01

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Re: FELP - Foresight Energy
« Reply #240 on: May 17, 2016, 07:32:13 PM »
FELP saga reminds me of ROIQW nightmare, where they extended 3-5 times and then BIG FAT EGG. I am expecting something different this time :)


PullTheTrigger

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Re: FELP - Foresight Energy
« Reply #241 on: May 17, 2016, 07:34:27 PM »
There are interesting videos on long wall coal mining. The auger is crazy. I can't imagine the maintenance to keep this equipment up and running in these underground conditions.

https://www.youtube.com/watch?v=WmwEB4DY_jc

https://www.youtube.com/watch?v=flePGEGtIAQ

Just think of all these stranded assets if coal is forced out of electrical production.

Picasso

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Re: FELP - Foresight Energy
« Reply #242 on: May 17, 2016, 07:57:46 PM »
What's funny is that FELP shares Murray facilities to reduce that maintenance capex.

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Additionally, access to the Murray Energy manufacturing facilities will allow us to significantly reduce our repair cost and maintenance capital expenditures on critical equipment. We continue to expect capital synergies to be $10 million annually, which allows to keep average maintenance capital expenditures at approximately $70 million per year. With respect to SG&A cost, we've largely realized the significant cost reductions laid out when the Murray Energy transaction was announced and expect to see annual SG&A savings of $16 million versus 2014 spending levels.

I wonder what would happen if Cline simply let it go into bankruptcy.  I doubt they'd let Foresight continue to use their facilities.

What exactly happened with ROIQW?  It didn't seem that compelling to me (maybe 50/50 odds) but I'm not entirely aware of what made it fail.

bigbadwolf

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Re: FELP - Foresight Energy
« Reply #243 on: May 18, 2016, 03:41:33 AM »
Extension to May 20

PullTheTrigger

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Re: FELP - Foresight Energy
« Reply #244 on: May 18, 2016, 04:05:54 AM »
Of course and we'll see the next extension on Monday after.

Picasso

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Re: FELP - Foresight Energy
« Reply #245 on: May 18, 2016, 05:14:21 AM »
Or we'll see the global support agreement on Monday like we saw the senior lender agreement after the last two day extension.

bigbadwolf

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Re: FELP - Foresight Energy
« Reply #246 on: May 18, 2016, 05:48:35 AM »
Maybe I am misinterpreting the details but...

The First Amendment to the Transaction Support Agreement (senior lenders) expired yesterday - 5/17/16.  As per the 8-K filed on 5/9/16 - "The Support Agreement may be terminated automatically after three business days upon the Partnership failing to enter into such agreement on or before May 17, 2016."  They have three more days for the support agreement terms with the senior lenders - until May 20th.  The language of today's 8-K makes no mention of extending the senior lender support agreement.  Today's 8-K only extends the 7.875% lender's forbearance period until 5/20/16.  This is different than the last 8-K filed on 5/9/16 that extended both the senior and 7.875% lenders.

It has been one month since the original senior lender support agreement dated 4/18/16.  I wonder if the senior lenders have seen enough - tiring of this waiting game.  Is it really time to poop or get off the pot this Friday?

Picasso

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Re: FELP - Foresight Energy
« Reply #247 on: May 18, 2016, 06:00:55 AM »
Yeah that's my read as well.

wachtwoord

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Re: FELP - Foresight Energy
« Reply #248 on: May 18, 2016, 06:42:00 AM »
Both mention the possibility of a further extension:

https://biz.yahoo.com/e/160518/felp8-k.html

https://biz.yahoo.com/e/160422/felp8-k.html

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FELLC and Foresight Energy Finance Corporation (together, the "Issuers"), together with the Partnership, again extended the term of the existing forbearance agreement that was entered into on December 18, 2015 with certain holders (the "Consenting Noteholders") of the Issuers' 7.875% Senior Notes due 2021 (the "Notes"). As a result of the extension, the forbearance period runs through May 20, 2016, unless further extended by the Consenting Noteholders in their sole discretion or unless earlier terminated in accordance with its terms.

The extension is intended to provide additional opportunity to engage in discussions and negotiations with the holders of the Notes and our secured lenders.

(emphasis mine)
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

Picasso

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Re: FELP - Foresight Energy
« Reply #249 on: May 18, 2016, 06:52:45 AM »
The difference here is that we're in the three day grace period. The last time they amended the agreement before going into the grace period.