I figured with this much risk the market will sell down lower from the 70's until this debt covenant issue was resolved.
@Lionel007: I didn't say that i thought the banks would call in the loan. I just thought it was concerning that the debt covenant issue was first raised to the syndicate in December and yet as the report was issued (19/2/13) they were still at 'final stages of approval'. I have learnt that delays beyond what common sense tells you is an appropriate amount of time normally means bad news is coming. if they had sorted it out post 19/2 it would have been listed in the subsequent events section.
There is more than one bank in this syndicate so any of them can ask for more favourable conditions on the loan or play hardball with DML. After all, DML is over the barrel, they need the syndicate to sign off on the new covenants. I'm not saying this has happened just that the risk of something going wrong will price this stock down heavily.
IF this issue is resolved then I think DML can reprice to 90c+ and there will still be an opportunity to buy back in when the news breaks and benefit from the upside.
DML Price at posting:
65.5¢ Sentiment: Hold Disclosure: Held