breach of debt covenants - overdone

The issue of the breaching of debt covenants seems a bit overdone to me.

This is my understanding: The company has 3 debt facilities, $180m in project debt, $25m for cost over-run and $25mill revolving credit. They drew down the full $180m and $25m for over runs on the project and none of the $25m revolving facility. They have subsequently paid $17m of the principal project facility back, such that total debt is $188m made up of $163m project debt plus the full $25m over run facility and still $0 on the revolving facility.

In addition, they had $48m cash, $30m unrealised hedging gains and on-going production.

What ever the breach of the (relatively) minor $25m revolving facility, it is clearly not endangering the financial stability of the company.

This will blow over and in hindsight, somewhere around these levels is/was an excellent buying opportunity.

And clearly, Citi Group and its lackeys at the AFR can be ignored for a flagrant conflict of interest. Not subtle. I am very surprised with the level of bias in reporting at the Financial Review. It is sufficiently unbalanced as to me make me wonder if someone there is short the stock!

G'luck