under the current debt restructure they cannot pay distributions until all of the notes and deferred margin is paid in full
they cannot pay down the debt to $1 and sit on any further cash flow , regardless if it comes from asset realisations or interest income. It must all go to repaying the deferred margin onces the notes have been repaid . We cannot get any distributions until the existing facilities are repaid in full including the deferred margin
the current rate of debt repayment is not expected to continue. There are far fewer maturites expected over the next couple of years. We would have rely on early repayments or assets sales to achieve that. And the current facility is very restrictive on asset sales, so again a restructure to give more room to move in asset sales and the extinguishment of the current facility appears to be the only real avenue.
just my opinion
MXQ Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
