You have your priorities in the right place. Just a note to remind people that
"Under the terms of the Senior Debt Facility, KML is required to comply with and commence reporting specific financial cover ratios effective on 31 December 2013 and quarterly thereafter. KML did not comply with the debt service cover ratio (DSCR) on 31 December 2013 and is forecast not to comply with the DSCR on 31 March 2014. If KML is in breach of a cover ratio for two consecutive quarterly dates, and one (or both) of which is not waived by the Facility Agent, or cured by an equity contribution from shareholders within 30 days of notice, this is an Event of Default under the Senior Debt Facility and the Facility Agent has the right to call KML for repayment of the total loans outstanding."
The clock is now ticking a bit faster. Tomorrow GBG will need to be granted a waiver or comply with the cover ratio conditions within the time frame specified or it will be in default under its senior debt facility. The directors of KML will be very cognisant of their obligations under the insolvent trading provisions of the corporations law. IMO once in default the directors will need to be very confident of Ansteel's ability to secure funding or else they will need to start considering calling in an administrator.
The recently reported CITIC Pacific commitment to the Sino project will give holders some hope that a new funding solution will be found for Karara, but I still would not like to be in your shoes whilst the funding issue remains outstanding.
Hopefully those of you who decided that it was not worth selling will get some welcome news soon. Sincerely wish you all luck.
SilentO
SilentO
This is not investment advice. If you are unsure about any investment decision you should consult a licensed professional advisor.
GBG Price at posting:
5.9¢ Sentiment: Sell Disclosure: Not Held
