LLP only get 12% of the DMF on the PTN properties...so its not that profitable as you state.
PTN are in a hell of a mess and are deadly serious in selling assets. My spies tell me they have sold one in Queensland and the price isn't flattering....but that's what happens when a desperate seller meets a not too willing buyer!
I'd like to see LLP flick the PTN properties but not lose any money as a consequence.
I also agree about the interest covenant...but the banks, being the bloodsuckers they are, will extract more blood in the form of higher interest rates. In PTN's case they are now paying some extra $4m in interest and that's got to leave a hell of a hole on the bottom line...or in their case, simply add to the losses.
Even Westfield, as big as they are, got pinged by 550 basis points on a roll over of finance recently.
So, be under no illusions, unless Daddy LLC comes to the rescue we are going to cop it in the neck on extra interest charges.
At the end of the day there are two parts to this issue...there's the finance side and there's the business side.
Unfortunately managements time is been spent resolving the finance issues and perhaps not having sufficient time to concentrate on the business side of things.
You'd think that LLC might get their treasury department to look at a temporary loan (say convertible notes)to defer this temporary problem and let management got on with running the business.
The first issue of business....get rid of PTN and any other assets that are below the limbo bar on quality.
LLP Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
