Yes, I would. To echo Mr. Kiss's points, that it's posing as predatory lending or crafted by predatory lenders, I will say that that's certainly an accurate statement. Previously, I've described the program as a Faustian bargain masquerading as a payday loan with a smile.
The appointment of a board observer is a big red flag. When combined with the potential for the dilution of equity conversion, it could spell that the company is signing over the entirety of the operations to the Canadian government. I don't understand why they would ever want to be in that position, but evidently they've built the infrastructure and deal in such a fashion.
As for the net-zero by 2050, the level of scrutiny and monitoring that's required to participate in a loan is something over and above what the highest-rated ESG companies in Canada are already doing. We still haven't been able to quantify the administrative cost of it. Really, we are treating it as if we're not eligible for it.
The other large red flag is the eighty-twenty split between unsecured and secured. When you enter into a secured agreement, you allow everybody else in your secured lending syndicate to agree upon somebody else having a secured portion of it. This opens up our secured agreements at a time when oil volatility is at twice the historical averages. It's not really beneficial for anybody to enter into one of these agreements at the risk of having an additional 3% or 4% thrown on their senior lending. All of the senior lenders would have to agree unanimously to enter into this agreement, this additional LEEFF agreement.
Like I said, at a time when oil is trading at twice its normal volatility, it's not realistic that we would enter this program.