Ann: Bondholders Support Confirmed, page-32

J111 - as with most loan agreements there will be a mechanism to payout the loan early, however it will come at a cost. I would expect TER will be required to pay the value of 15mths worth of 12.5% interest plus the .75% BA revenue. If we take on a new loan we will effectively pay double interest, old Euroclear Interest + New Loan interest (20% p.a). I would hope the agreement signed with Euroclear is not a fixed 12.5% coupon on the full facility amount until maturity but rather 12.5% interest on the principal amount outstanding each month. Once the cash sweep has been completed (loan repaid) and the assets are revalued to align with projected coal prices then one would think the NTA backing for this share would be 50-60c minimum. Coal prices are not going to fall off a cliff, winter is coming and India, China and the UK are all sitting on all time low coal reserves. There is still a lot more to this story, time will heal old wounds.