The generation of capital through the issue of bonds is not feasible because of the likelihood that the discount rate would be unacceptably high. The recommendation is that the company attempt to refinance the debt that is in default by offering a premium rate of interest to the current holders of the debt. The current holders of the debt have little to lose through acceptance of such a proposal because their prospects of repayment are greater through an on-going Rocky Mountain Helicopters than they are through the liquidation of the company. The company's future prospects are fairly good, although they are not great for th
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