ConnaCher oIl and gas ltd. (8.5% seCond lIen notes, due 2019)

The position Short

Why don’t you like it? Mr. Richardson points out this integrated oil and gas producer has substantial leverage, limited cash and will need to heavily spend on capital expenditures in order to improve its production profile.

“They have the reserves, but they’re not a very efficient operator,” he said. “At the very least, we feel that first lien debt could be issued in front of these notes to push them further down the capital structure.”

Potential positive Very high oil prices