Voluntary administration is when the company is unable to pay its debts a an when they fall due.Do you really believe this to be the case, a bit of scaremongering going on here.
I was responding to a poster that stated this, I believe FMG has a way to go as they able to pay their debts as and when they fall due, issue is $1.0b due 2017 and at what price IOP bottoms out to and if they have reduced costs enough to compensate for falling IOP.
If IO price to say $35.0-$40.0mt, then they will find it very difficult if not impossible to fund these losses, unless their is a cash injection, refinancing and/or significant prepayment amounts received.
I personally believe that an announcement will be made shortly regarding steps taken to secure their future and reduce debt. In what form this will happen, JV, asset sales, capital raising, refinancing, I am not sure what the announcement will be, but I am sure that they are in serious discussions with their lenders and strategic investors, to reduce some of the risk that the market has factored in due to their debt level and falling IOP.
They stupidly left themselves exposed by not going to the bond markets last year to extend repayment dates and possible reduction in the interest cost, they will now pay dearly for this error of judgement
FMG Price at posting:
$1.82 Sentiment: Hold Disclosure: Not Held
(20min delay)