Banks are all for capital preservation, those options are nothing more than a sweetener that they forced onto MAE, in case this went ok. The banks main priority is their capital and interest. They draft loan agreements so that the slightest misconduct puts the lendor in breach and so they can call in when they want.
If i was fortis, i wouldnt want another financier loaning money, it means that when this is done, there is another priority creditor to share the money around with. And if the sale is low, as it is looking with this lag, things are going to be tight. If there is no sale then this is especially tight.
It would also be good to see MAE's current loan aggreement, chances are they may have provided, as security, all tangible assets and have very little to provide for in the next arrangement.
MAE have been searching for finance for 2 months now and still nothing. Have you been able to contact PC yet Kiwi, I dont think he will be answering phones any more, if this is wrapping up at the end of the week.
You know what scares me more than this going into volun admin: The extremely nasty loan agreement that would be forced onto MAE for them to get 'financing'. Itd be akin to financial rape. You see, when providing finance, banks dont use reasons such as: 'ody are in the know', 'goldman is still there', 'there are bigger holders that havent yet sold out', 'i'm just here for the asset sale, i dont care about management'.
good luck.
MAE Price at posting:
36.5¢ Sentiment: Sell Disclosure: Not Held
