We know that a valuation is in the process or has been completed for the coming interim report.
It is very possible that the LVR could have been breached as a result. I would have hoped that valuations had improved given what looked to be happening to commercial RE in Germany generally over the past year, but it was getting very tight with respect to the LVR.
If it is an LVR breach, the fund could easily afford to use cash to pay down debt and restore the LVR, but I suspect they would be not so keen to do this.
It will be very interesting to see what this TH is about, but my bet is that MUE will have done well in any negotiation given their strong cash position and the likely reluctance of the bank to want to be handed the keys.
Disclosure: Holding very little.
MUE Price at posting:
19.0¢ Sentiment: None Disclosure: Held
