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Alberta government takes major stake in Precision Drilling

Opportunity to restructure debt with provincial money smells like bailout


 

Who’d have thought it, in Alberta of all places, that bastion of the free market system? But there it is: AIMCo, an investment wing of the Alberta government, is to take a 15 per cent stake in Calgary-based Precision Drilling Trust, an oilfield services company, advancing it $380 million in financing that will give the outfit a chance to restructure its debt. “We expect the financing transactions to put the Trust back on path to return to an investment grade credit over the next few years, allow Precision to weather current market challenges and pave the way for future opportunities,” said president and CEO Kevin Neveu. Must be nice.

The Canadian Press


 
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Alberta government takes major stake in Precision Drilling

  1. Precision is one of the most important oilfield services companies. I would argue that its financial health is a matter of concern to Albertans. I would also argue that Alberta taxpayers will benefit in the long run from their equity investment in Precision.

  2. I also think in long run there will be benefit for AIMCo and general public, (hopefully)

  3. When the government gives tax money to corporations that is corruption. The failure of PD occured at an executive level. Had they been allowed to fail, honest entreprenuers would have picked up the pieces and all parties be forced to acknowledge the causes of the failure. Denial is not in the interests of Albertans any more than paying the salaries of failed private executives while cutting funding to education.

  4. PD created their own demise. Small companies such as phelps and akita are waiting for the work, and PD gets "our" money to pay their execs salaries. The "use PD and your rental equipment is free" clause sure takes a stab at smaller oilfeild rental companies as well. The 380 000 000 dollars could have been better spent by helping out smaller companies who do the same work for less money. Thus more holes punched for the same amount of money, Just another bailout for a company which could not hack the buisness, while our education funding is going down the drain. Lets put more money into our future, and less money into what should be a company of the past

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