mfs needle post, page-13

When you talk about MFS being insolvent, I assume this question is raised by the sudden need to sell assets to pay this debt?? MFS wouldn't have tried to pay off this debt unless they couldn't refinace it. I understand that MFS actually has good cashflow 250 odd million / year cash profit.

I believe that this situation comes from the recent constriction on borrowing criteria caused by the 'sub-prime crisis'. This problem effected RHG and CNP, then through shareholders fears became a reality once MFS was devalued to $550 million.

If MFS hadn't of been sold down to $1/share, they wouldn't have had any trouble refinancing their short term debt. MFS debts are easily servicable with their cashflow as long as the banks will refinance them. The only major debt they have to refinance isn't due for 3 years (as long as they don't default another), they have plenty of time to adjust their leverage before that time.