PDS
Can this company stay in business? It seems like if they're able to acquire reasonable debt that they should be able to service it. Essentially they're faced with two problems:
1.) Digesting Grey Wolf
2.) Staying in business until natural gas prices rise.
They seem like a buy if they can do those two things, but it seems largely questionable whether they can. Right now they're financing their purchase of Grey Wolf with their RLOC at 17% interest. Now they've wisely suspended their dividend, but they have to get some long term financing in place soon. Does anyone have any insight into their odds of doing either 1 or 2? Natural gas seems poised for a recovery but I don't really see anyone saying so publicly.
