I don't know why the $29.5mil lender(I think it's Lehmann Bros in administration)would negotiate with them - first quarterly instal of $7.5mil due at the end of March so they're down to the last month to deal with them. So they'll probably have to issue more shares to payout the debt at some stage. And then they have to finance the development of Beibu Gulf by issuing more shares.Can't see any bank financing this Chinese venture.They don't get any money from CNOOC until the project starts generating revenue. Don't know how many shares will be on issue at the end of the day. It currently has the best leverage for Beibu but that mightn't be the case after issuing a bucketload of more shares.
PSA Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
