afr: mt kellett may convert debt into equity, page-12

This has been in the pipeline for ages. Lynas cannot service the total value of its borrowings with its current cashflow situation so how else is Mt Kellet going to redeem the value of their lendings? Anyone who begs to differ has their head in the clouds as much as the $4 club brigade. Shareholders will obviously be hoping and dreaming for a conversion above the 50c mark so that Mt Kellet have to pump the stock in order to get their money back in its entirety. This could provide the get-out-jail card that all of you are looking for. MK won't bail at a 60%+ loss; they'll pump this thing until they can escape without too much more than a grass burn. As for what happens to the stock when MK have to start offloading their stock on market in order to get off this rollercoaster, well the old 'musical chairs' idiom comes to mind. But if ever there was a reason for LYC to have one final dead cat bounce, this is it. Of course LYC's books start to look a fair bit healthier without $225M in borrowings, but at what cost (i.e. more dilution and a spiders web of a share registry)?