The covenant revision was so costly. Interest on $1B at a 2 3/4 higher interest rate translates to $25-30M over 2010 and they paid about $5M in up front fees. So a revision from 3 to 4 on the EBITDAX to debt covenant cost them $35M....And how much time does that buy them. I have run all the numbers. They will make it past Q4, but Q1-10 will require another asset sale. They will be in violation of even the revised covenant in Q1-10 without an asset sale that generates a substantial gain. Bottom line is they are being screwed royally by Credit Suisse, the same company that underwrote the secondary with JP Morgan. Why did Credit Suisse stick it to them? Because they could....

Think about what happened....They paid $35M for nothing.....They paid $35M for about a 4 month waiver of time. Time to develop Telemark. And they have agreed to share revenue on Telemark with vendors to a degree yet to be quantified.....They are really behind the 8 ball now....I am moving to the sidelines until I see production from Telemark.....Their entire future rests on the development of Telemark.

Michael