With the latest round of commodity price drops over recent days, there is going to be even more mine and refinery closures than anticipated even a few weeks ago at AGM. These are bradkens customers of their consumables that are closing down. Revenue/earnings is looking like softening further than was stated at AGM with the commodity price route over the last week, so that will put Bradken in breach of covenants unless they raise cash or sell assets. It's gonna be hard to sell assets in the current environment. They need a cash injection desperately to pay down some debt or there is a real risk of covenant breach and administration. The sad thing is the board don't even recognise how much strife they are in!!
BKN Price at posting:
52.5¢ Sentiment: None Disclosure: Not Held
