fortescue capital hopes hit snag, page-5

i think there are 4 interesting skeletons about to leap out of the cupboard:

1) legal position with repsect to creditors (Port Hedland houses, shipping contracts, etc);
2) legal position with respect to regulatory authorities (ASIC, Worksafe, FIRB);
3) working capital position - FMG's cash burn rate is quite spectacular, and at it's current production rate debt coverage must be a stretch;
4) forrest is getting itchy feet at CEO level, probably for all 3 reasons above.

if the valin deal doesn't go through the FIRB i think we'll be looking at either federal or state governments stumping up some cash. neither wa or canberra can afford to let fmg go down.