Lets assume the engineering business will be 'sold' over the coming period.
Then we are left with the Cuadrilla holding and the drilling division.
For about the value of the drilling division we have loans at between 18 and 22% interest. If drilling does well they can pay the interest. At best.
Does that make sense?
Yet, no hurry to change this... No sense of urgency.
Why?
Because the board and the voting is dominated by the party that receives this loanshark percentage. That is why they are allowing this to continue as long as possible.
So, please mature the drilling business over the next 6-12 months, following market strengthening. And then sell it, and pay off the debt. Right now this loan is like a woodpecker building a nest, hollowing out the tree from the inside. And every time they take money and shares in return. It is a silent, very cheap takeover of AJL by Kerogen.
No shale party in the UK has loans with this type of interest. No drilling company in Australia has loans at this type of interest.
Looting.
AJL Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
