ozl email received all shareholders must read

this paints a clearer picture

NO BANKS WANT TO LEND ANY MONEY IT SEEMS DIFFERENT TO WHAT WE HAVE BEEN TOLD BY THE BOARD



Hi Richard,
If sales of assets go through, say for $400 million as is suggested by the media, that drops down the amount needed to raise.
As a shareholder I would like to know, how much is needed to be refinanced now, how much can wait till a later time, and how much needs to be repaid to the banks that want it.

ozl response
All of the debt in Facility A, B, C and the Bridge facility needs to be repaid. Collectively this is the vast majority of the debt outstanding.

Also how much willl the banks refinance? It has been stated earlier by the company that some banks want to stay on, how much are they prepared to put up? Is it 200,300 500 mill?

Given the situation changes on an almost daily basis and given the continued decline in global credit markets the vast majority of banks now want all of their debt repaid

Maybe the balance may not be that great for a small capital raising for the difference(after asset sales) that will allow shareholders to retain ownership, without a takeover, at a very undervalued price IMO .

The capital raising is still not a viable option given the sums required/the state of equity markets/discount and number of shares needed to be raised and consequent dilution.


me:


With Ph about to give money rather than taking money, surely this helps the situation with the banks.


OZL:
It does but it does not assist in the very short term re raising money. Offset is that it reduces the risk to Minmetals who have therefore paid such a high premium to the previous share price.

It maybe better for ozl to pay the 25 mill break fee in 2 months if commodities have improved etc and continue in its own right, you may be surprised at the amount that could be raised to keep ozl from takeover.

Thanks again for taking the time to read my emails, I hope some of the comments can be filtered thru to the board