Synergy Pharmaceuticals Inc fka SGYPQ

[Opti Mist]

Summary
On October 25th, Synergy announced that sales of constipation drug Trulance were growing slower than anticipated, raising the risk of breaching liquidity and revenue covenants of a private loan.
Lender CRG has been accommodating to date, allowing multiple amendments of the loan terms over the past year, but Synergy states it is unwilling to budge.
If CRG refuses to amend the loan further, Synergy could be forced into insolvency; high bankruptcy risk is already priced into the stock.
It appears to be in CRG’s interest to find an accommodation; forcing Synergy to go under would likely cause the lender both monetary and reputational losses.
While odds are on a deal, any play now would be pure speculation; a successful amendment would end the crisis and launch the stock upward, while failure could drive the stock to zero.


https://seekingalpha.com/article/4216496-synergy-pharmaceuticals-teeters-brink#alt2

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