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24.0¢ st barbara limited

Why would they call in administrators. Worse case capital raise....

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blind dolphin

27 Posts.

8

02/06/23

13:22

Post #: 68100353
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Originally posted by yurts: ↑

The issue is not really about paying a break free, it is related to the SBM's debt covenants with the syndicated lender. SBM negotiated a waiver for the interest cover ratio prior to December 2022 (apparently, they looked likely to breach this covenant). Basically, they negotiated to kick the can down the road to 30 June 2023 on the condition that a merger review and refinancing event occurred prior to this date.

The issue is (as I understand it) that if SBM breaches the no shop, no DD provisions of the binding GMD deal, and the if GMD choose to terminate the deal, and again, if the SLR bid is late, withdrawn, or not even forthcoming, the lender could call the debt into breach and appoint an administrator.

A lot of ifsand could's but if you were the board of SBM, would you risk the above scenario on a highly conditional offer that does not adequately address the risk? Ask yourself which way does your fiduciary compass would point?

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Why would they call in administrators
. Worse case capital raise. Which in my opinion is a better option, as long as the bod are gone.

Last edited by blind dolphin: 02/06/23

SBM Price at posting: 57.5¢ Sentiment: None Disclosure: Held
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(20min delay)
Last 24.0¢		Change 0.005(2.13%)		Mkt cap ! $192.2M

Open	High	Low	Value	Volume
23.5¢	24.0¢	22.5¢	$1.103M	4.726M

Buyers (Bids)

No.	Vol.	Price($)
13	634360	23.5¢

Sellers (Offers)

Price($)	Vol.	No.
24.0¢	1541814	55

View Market Depth

No.	Vol.	Price($)
13	634360	0.235
22	1094428	0.230
37	929841	0.225
36	1292722	0.220
26	1073870	0.215

Price($)	Vol.	No.
0.240	1541814	55
0.245	1144250	20
0.250	411955	16
0.255	273155	9
0.260	334941	9

Last trade - 13.52pm 28/05/2024 (20 minute delay)


Last 23.5¢			Change 0.005 ( 0.38 %)
Open	High		Low	Volume
23.0¢	24.0¢		22.5¢	1498953
Last updated 14.20pm 28/05/2024 ?

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