You would think they would step in as a last resort. macbank...

You would think they would step in as a last resort. macbank have moved to distance themselves from their satellites but pretty much had to keep this one.

The covenant breaches relate to gearing levels on the head trust loan and cannot be rectified. Therefore that covenant has to be dropped, or a new lender found, or liquidation. I suspect the lender wants its money back given its stance to date, so it will be a macbank bailout or something ugly. My bet is a macbank bailout, it's small chips compared to the money they had to throw at brisconnections a couple of years ago.

Possibly some dilutionary outcome as well along BBI lines. One can only conject in the absence of any announcement. The loan has been in default since mid-2009. Hopefully it won't take months for a resolution.