- Niska Gas Storage (NKA -9.2%) sinks following a downgrade to Sell at Citigroup, where analyst Faisel Khan sees a potential credit event and the stock valued at zero.
- While NKA's gas storage assets will be valuable over the long-run, "the business does not support the capital structure today, and a credit event now seems likely," Khan writes.
- He also sees increased risk that the public equity will be diluted substantially in a restructuring, and that it will be challenging to refinance the debt because the cash flow is not likely to support the financing costs.