also, the most concerning part is that vpg has asked its banks to restructure its debt and covenants.
some things i observed with afg and bnb trying to do this are:
1. the banks have absolutely no sense of urgency. they will drag talks out as long as they can to s crew vpg even harder. take a look at afg, it took them 8 months of negotiations to restructure the debt. meanwhile the vpg share price will languish at these levels until the negotiations are resolved. the uncertainty will slowly kill vpg and destroy its capacity to do deals in the future.
2. there will be severe penalty interest. interest rates are falling and that should be good for vpg, but don't expect vpg to get anything out of it. the banks will completely milk vpg for higher interest rates and charges.
so basically its going to be a painful wait until vpg is able to reach a settlement with its bankers, if it is able to reach one at all and they don't throw the company into administration. and the longer it drags on, the more damages will be done to vpg.
don't forget the company said it would provide an UPDATE on february 25. i don't expect this issue to be resolved for at least 6 months knowing the banks and how they treat companies in distress.
- Forums
- ASX - By Stock
- 3.5c on tuesday
also, the most concerning part is that vpg has asked its banks...
-
-
- There are more pages in this discussion • 19 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add VPG (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.79 |
Change
0.000(0.00%) |
Mkt cap ! n/a |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online