re: Ann: Update on asset revaluations and fin... The summary number of $320m is eye catching but I'm not sure of all the maths underpinning it. Certainly the announcement only amounts to circa $100m odd. Is this a case of clearing absolutely everything out?
The announcement is odd... it has that we told you so feel about it. Or "you've been warned!!"
I'm not overly alarmed as by and large there are no surprises... in fact, if any, to the upside. People had been dicounting the property portfolio by 30% plus and it has come in less than that. The loans facility has only be discounted by about $20m of gross value @ $160m...certainly not 100% as could reasonably have been expected. Notably, these are current valuations (as in completed in the most recent weeks).
The CS position I think has been, is and remains the most volatile aspect of RAT. If a player were to take out CS then RAT would be an entirely different beast. All facilty negotiations have effectively isolated CS to the loan portfolio...interesting that they would allow it. Ideally, they would sell the portfolio however having regard cost of funds and lending rates, in time could be a good cash cow.
Lastly, all other lenders are supposedly re-negotiating. It is difficult to understand why they would when CS could (and as I understand it empowered to do so having a breach in their pocket) wind RAT up? They either cannot because they are legally subordinate to other lenders or they see an exit or they are negotiating with other lenders to be taken out. This aspect needs clarity.
Bugger Bugger Bugger
Cheers
DYOR
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