GJT can cover their interest easily. I am betting they will find a way through their capital management issues. I can't see too many examples at the moment of companies that can easily repay their interest going into admin. Yep, the Japanese banks are treating GJT poorly. But my bet is that they want them around to keep generating cash (for them to trap). When conditions improve and valuations improve as they are now showing signs of, the cash trap will be removed and GJT will be able to pay circa 8c distributions.
Also, don't forget that Japanese property prices are at historical lows, only a very tiny fraction of what they were before the bubble burst. This in a county with huge amounts of savings looking for a home. It is only a matter of time before property comes back into fashion.
Risky, but what a huge upside.
DYOR coz I don't know much.
GJT Price at posting:
$2.30 Sentiment: Buy Disclosure: Held
