I dont think the covenants will be No 1 issue for the new CEO. On the face of it the covenants position looks quite scary with how the shareholders funds measure is close...
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However I dont think these are major causes for concern for the following reasons;
- The bank debt is not that significant ($100m) compared to the amount of cash the company generated from operations ($164m in last half year - which includes payments to landlords).
- Although the bank has covenants to protect its interests, the bank will only pull funding as a last resort. Banks typically work with companys first as getting repaid their principal and interest in an orderly manor is usually a better outcome for them.
- So based on the fact Myer is paying a lot of principal and interest back to the bank, I see the risk of the bank pulling funding in the near future as remote.
So in my opinion anyone who talks about a doomsday scenario for Myer where in the near term administrators are called in following a covenant breach are misinformed / a downramper.
(all my own opinion - DYOR)
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I dont think the covenants will be No 1 issue for the new CEO....
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Last
63.5¢ |
Change
-0.005(0.78%) |
Mkt cap ! $528.2M |
Open | High | Low | Value | Volume |
63.5¢ | 65.0¢ | 63.5¢ | $361.1K | 565.6K |
Buyers (Bids)
No. | Vol. | Price($) |
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4 | 31011 | 63.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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64.5¢ | 10000 | 1 |
View Market Depth
No. | Vol. | Price($) |
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4 | 31011 | 0.630 |
3 | 82416 | 0.625 |
5 | 43444 | 0.620 |
1 | 47610 | 0.615 |
12 | 191728 | 0.610 |
Price($) | Vol. | No. |
---|---|---|
0.645 | 10000 | 1 |
0.650 | 22147 | 4 |
0.655 | 60403 | 2 |
0.660 | 90731 | 3 |
0.665 | 71219 | 3 |
Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
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Last
65.0¢ |
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Change
-0.005 ( 0.70 %) |
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Open | High | Low | Volume | ||
64.0¢ | 65.0¢ | 63.5¢ | 141105 | ||
Last updated 15.59pm 14/06/2024 ? |
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