That post LZA is not very representative of the facts.
"They can't sell assets at less than 95% until july 2013.."
Correct. 1/1.
"..by that time debt will be just about gone anyway. should have debt down to about 40 mil by end of this year.,"
Wrong. 1/2. No debt will still be around $25M and assets $85M (at current MTM) on 30 June 2014 if you use the weighted average life figures from the qrtly report.
"the market value of the portfolio is around 79% of face value."
Well sort of but you need to factor in that $25M of that face value looks like being worth NIL, so more in the 80s really. 1/3
"But the running costs are too large for the small portfolio and that is taking away potential debt repayment capital."
No. They still cleared 1.5M cash in the last quarter after expenses and as gearing gets lower that number could if anything get better. 1/4.
"it will still take a while to get the gearing down to 50%"
No. Right now it is net 61%. As the repayments continue this % will go down quicker. I would think 50% by the end of the year. 1/5
"and hard to sell the portfolio until debt is paid down.
More than 80% of the portfolio is rated BBB and above. That sort of stuff is very easily sellable although what exactly you get for it will depend on the start of the world markets at any given time. 1/6
"I figure we will need to wait till july 2013 to see resolution."
We will hear about what the options are at the end of June as per the mandate of Aquasia. 1/7
I appreciate that the MXQ situation is very difficult to understand. I spend several months studying the past 4 qrtly reports to come up with my calcs. Take a little more time to read them again
MXQ Price at posting:
20.5¢ Sentiment: None Disclosure: Held
