Converting assets to cash.
If they are not going to build the 10,000tpa plant on the current site they won't need all the land so may as well sell some of it(asset) and convert it to cash.
The remainder of the site, they can sell and lease it back on say a 30 year lease or whatever they think the life of the demo plant will be. Note however, they will then have a regular lease(rent) payment to make. The terms and condition of the lease will specify LMG's obligations on the upkeep of the site, insurance requirements, etc.
I guess they are trying to avoid taking out another loan. Not sure if they could obtain a loan at the moment because (if they lease/sell the land, and my understanding is that they have also leased out the plant) they will not have much assets remaining to mortgage for a loan.
Converting assets to cash.If they are not going to build the...
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
