its not so much as required to distribute the cash, as that for tax purposes its will be considered distributed regardless as to wether it is physically distributed. It would be unlikely that they would put unitholders in a postion where they had to pay tax on a distribution they did not receive. The profit on the hedge being closed out would be a taxable gain and would result is for tax purposes in a distributable profit.
In relation to the LVR position. The loans are non recource . The current LVR is 91.3% being $312million debt against $342million is property. If 2011/2012 saw the same decline in property values, there would be no equity left at all. In 2014 when the loans are due 91.3% is a long way for enough equity. Why would you go an throw godd money after bad and hand over any of the $75million in cash.
MUE Price at posting:
18.0¢ Sentiment: None Disclosure: Held
