Replies to post #9596 on China Unlimited

[RealDutch]

They need money.

As of December 31, 2015, our total purchase commitments consisted of the estimated remaining construction expenses of approximately $1.8 billion relating to the construction of our three seventh generation drilling units under construction, which are scheduled to be delivered in 2017, 2018 and 2019, respectively. The estimated total project cost per drilling unit under construction, excluding financing costs, is approximately $679.5 million, $743.0 million and $743.0 million, respectively. As of December 31, 2015, we have made pre-delivery payments of $333.6 million in the aggregate for these newbuilding drilling units. The estimated remaining total construction payments for these drilling units, excluding financing costs, amounted to approximately $1.8 billion in aggregate as of December 31, 2015. We have not yet arranged financing for the remaining construction payments relating to the construction of our three seventh generation drilling units, which are scheduled for delivery during 2017, 2018 and 2019. We plan to finance these remaining payments, with new debt or equity financing, which we have not yet secured in full. We cannot be certain that we will be able to obtain the additional financing we need to complete the acquisition of our seventh generation drilling units on acceptable terms or at all.

Here it is. Up to $2 billion

https://www.sec.gov/Archives/edgar/data/1447382/000091957416012749/d7124871_f3-a.htm

[RealDutch]

They stopped paying a quarterly dividend of $0.19 in June 2015. That's when the stock dropped from $8 to $1. It's never a good thing. I wonder what happens if they cancel the 3 projects and start paying a dividend again.

This is complicated. Can we outsmart insiders? Can we get lucky?

[RealDutch]

Here you have the answer. This doesn't sound good.
From the 6-k filed in August 2016

Strategic Alternatives
Given the ongoing distressed market environment as well as the consensus view that a recovery may not occur for several years we have engaged financial and legal advisors to assess the viability of our capital structure and alternatives that may be available to pursue. In the recent period, we have been approached by several of our debt holders who have in certain cases also retained legal counsel and financial advisors. While we have not made any specific decisions to do so, it is evident to us, and we believe, some of our creditors, that our debt obligations will need to be amended or exchanged for new debt and/or equity securities, and some debt holders may have little or no recovery on their investment. Notwithstanding that we do not have any material debt maturities before October 2017, we continue to explore and consider alternatives, which may include the possibility of a reorganization under U.S. bankruptcy laws or another jurisdiction so that we can continue to operate our business through this very difficult cycle with feasible prospects for strong, long-term success.

That must be a new world record doing fast dd.

[RealDutch]

Too much debt I guess. Payable in 2017. When a company has a lot of debt you have to dig into it. I don't know the details.

XIN also has a lot of debt. Sino Forest went bankrupt because they had too much debt. Although I didn't understand why at the time.

HERB doesn't have any debt. CCCL a lousy $5M with $107M in receivables. SIAF not a lot of debt either.