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Title : In which IKN analyses the 1q20 results of Trevali Resources (TV.to) using just one word
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In which IKN analyses the 1q20 results of Trevali Resources (TV.to) using just one word

Ouch:

And if you think  that's bad, Glencore now has them by the short and pubics. This next bit comes from the financials Note 2 and is seriously ouch:

To avoid a breach of the Revolving Credit Facility’s (the “Facility”) covenants on March 31, 2020, prior to the end of the quarter the Company obtained a 30-day covenant waiver to April 30, 2020. A further waiver was obtained subsequent to the end of the quarter to waive the covenants of the Facility until May 31, 2020. Certain terms of the Facility were amended, including a reduction of the amount available under the Facility from $275.0 million to $125.0 million, additional reporting requirements, restrictions on certain investments and distributions, as well as a minimum liquidity covenant. The minimum liquidity covenant requires that the Company maintain minimum financial liquidity, defined as cash and cash equivalents plus amounts available under the Facility of $15.0 million.
The amount available to the Company under the Facility as of March 31, 2020 was $19.4 million. In April 2020, the Company drew a further $19.0 million under the Facility.
As the covenant waiver does not extend for a period of 12 months past March 31, 2020, the Facility balance was reclassified from non-current to current liabilities as at March 31, 2020. As of March 31, 2020, current liabilities of $171.5 million exceeded current assets of $108.3 million.

The Company is currently in compliance with the minimum liquidity covenant under the Facility. The Company will not generate sufficient funds from operations to repay the Facility upon expiration of the covenant waiver on May 31, 2020 and will need to generate funds from other sources to do so or will need an extension or refinancing of the Facility. To address the near-term liquidity requirements, the Company has been in discussions with its lenders to negotiate further amendments to the Facility to provide the Company with additional time to generate cash and/or access additional sources of debt and equity financing. There can be no assurance that these negotiations will be successful or that the Company will be able to raise additional sources of debt or equity on a timely basis. The Company has also taken a number of other steps to assist in meeting the repayment obligations, including reducing capital, operating and exploration spending, placing the Caribou mine on care and maintenance and cancelling the Normal Course Issuer Bid (“NCIB”).
The ability to repay or refinance the Facility and maintain financial covenants depends on a number of factors, some of which are beyond the Company’s control. These include general global economic, credit and capital market conditions, timing of receipt of payments for the sale of concentrate and the demand for and selling price of commodities, particularly zinc. There is no assurance that the expected cash flows from operations in combination with other steps being taken will allow the Company to meet these obligations as they become due, that we will continue to meet the covenants under the Facility, or that the Company will be successful in renegotiating or refinancing the Facility. Accordingly, it is possible that the Company could be in default of the Facility prior to May 31, 2020 based on the amended terms, which could result in outstanding obligations becoming immediately due and payable unless waivers can be obtained from its lenders.

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