as i see it, page-40

It may not be that easy, to raise funds and buy out Sojitz.


Mt K, may have something to say about that proposal.

Note - 'restrict the Group from incurring any financial liabilities or creating any security interests which in each case would rank senior to or pari passu with the Convertible Bonds' -- this means a new loan for $260m would rank under Mt K.

Not sure a loan would be easy to get at anywhere near commercial lending rates. Who would lend LYC $260m if in the event of a bust Mt K have priority over the assets?

This restriction is lifted after '“Completion of Phase 1”, which occurs once there has been an average level of production over six consecutive months of not less than 70% of the nameplate capacity of Phase 1 of the LAMP. ' - read at least towards the end of 2014 at best.

I don't think so. A rock and a hard place, for sure, if new $ are required.

As I stated some many months ago, be careful of cheap finance from distress situation lenders.
------------------------------------------------
From the 2013 accounts;

The Convertible Bonds are unsecured. The Mt Kellett Convertible Bond subscription documents contain customary covenants which restrict the Group from incurring any financial liabilities or creating any security interests which in each case would rank senior to or pari passu with the Convertible Bonds, subject to specified exceptions which include the Sojitz loan facility. Those restrictions are released upon the Group achieving “Completion of Phase 1”, which occurs once there has been an average level of production over six consecutive months of not less than 70% of the nameplate capacity of Phase 1 of the LAMP. After the Group achieves Completion of Phase 1, the obligations of the Company and the Guarantors in respect of the Convertible Bonds must at all times rank at least pari
passu with all other present and future unsecured financial liabilities (other than the Sojitz loan facility).
On July 25, 2016, the Company must redeem all Convertible Bonds held by bondholders that have not otherwise been redeemed or converted by paying the relevant redemption amount to each bondholder.