credit suisse comment

1210 [Dow Jones] Credit Suisse says OZ Mineral's (OZL.AU) revelation that refinancing of its two major debt facilities is due Nov. 30 is shocking. "This is extraordinary in our view and obviously raises suspicion about what else of a material nature management might be keeping from the market," CS says. "With new management already under market scrutiny, a large black mark has now been recorded. We are gob-smacked!" Says if OZL's banks play hardball the company is in no position to repay or renegotaite its debt in time, and that this, "screams insolvency risk". Credit Suisse says it understands the security for the debt is provided by the asset, so the banks could take assets, although this would appear unlikely. Says the more likely outcome is materially higher debt costs. Credit Suisse estimates OZL's A$300 million net cash position at Jun. 30 is now a net debt position of between A$400-A$500 million. OZL on trading halt pending agreement with lenders; last traded at 55 Australian cents.(APW)