To be fair, capitalising a material amount of interest like this (requiring a change to the initial loan agreement and a price sensitive market update) is not really that common for a listed company.
And it is not common for a very good reason - it shows that they cannot service their debt. Not being able to service their debt means that they are very close to becoming insolvent. This variation to the agreement and the addition cash injection (of up to $40m) show that the New Senior Lenders have a serious amount of cash and are wrapping their tentacles around and tightening their control.
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- Ann: Market Update Amendment to Syndicated Facility Agreement
Ann: Market Update Amendment to Syndicated Facility Agreement, page-48
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