Sell or Lease Heavy Haulage Vehicles to Atlas, page-19

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Adamark

151 Posts.

29/04/15

21:43

Post #: 15184289
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Originally posted by Woody2 ↑

thehound posted this on AGO thread:

another interesting piece in The Australian, journos are never really clear but interesting comment about lenders might look for cheaper alternatives to lower logistic costs if current contractors rescue package is not accepted

"McAleese chief executive Mark Rowsthorn is in Los Angeles for the talks with Atlas bond holders. Contractors to Atlas Iron are believed to be offering to slash the costs of their services in an effort to keep the iron ore miner afloat.
According to reports the contractors, McAleese, Maca and Qube Logistics, have approached US-based note holders Western Asset Management, Sankaty, Fortress Investment Group and Marathon Asset Management with an option of forgoing some of their payments to ensure the company does not collapse.
In return, the contractors would share in some of Atlas Iron’s upside when the iron ore price regained strength and its position improved.
If the rescue package from the contractors is not accepted, the lenders may search for other contractors elsewhere to provide the logistics services for Atlas at a cheaper rate so the company can remain operational.
The four US-based hedge funds control 60 per cent of notes on issue to Atlas Iron, which have a face value of $US270m ($350m) and comprise the majority of its debt.
The note holders have hired Houlihan Lokey, which has opened offices in Australia, as advisers as the situation continues to unfold."

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thanks for posting this in the McAleese thread...gee it really shows how horrible this could be for MCS...margins arent there to be slashed (EBIT margin of 10%), any debtor amounts owed to MCS by will be lost one would think as part of any reorganisation of AGO...

MCS Price at posting: 16.0¢ Sentiment: Sell Disclosure: Not Held
1 Upvote

0 Great analysis

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