I'm not the coal expert you asked (not even close!) for but I...

I'm not the coal expert you asked (not even close!) for but I went back and re-read the 2015 Yancoal Full Year Report and various refinancing announcements again and I think I'm right in saying:

- Middlemount is worth almost nothing (from a Net Assets POV - $7m)
- it owes Yancoal $330m + a royalty of $51m
- it owes Peabody $130m (due ahead of Yancoal loan)
- it owes the banks a few hundred million (hard to tell how much)
- Yancoal have taken on new debt (US$950m) which effectively give the financiers ownership of the NSW mines and (it seems to me) is aimed at bolstering their investment in the Queensland mines - Middlemount and Yarrabee to last through to coal prices recovering.

Also:
(iii) Letter of Support provided to Middlemount Coal Pty Ltd
The Company has issued a letter of support dated 27 February 2015 to Middlemount Coal Pty Ltd
("Middlemount"), a joint venture of the Group confirming:
• it will not demand the repayment of any loan due from Middlemount, except to the extent that
Middlemount agrees otherwise or as otherwise provided in the loan agreement; and
• it will provide financial support to Middlemount to enable it to meet its debts as and when they become due and payable, by way of new shareholder loans in proportion to its share of the net assets of Middlemount.
This letter of support will remain in force whilst the Group is a shareholder of Middlemount or until notice of not less than 12 months is provided or such shorter period as agreed by Middlemount.

Wild guess - Yancoal might eventually buy out the Peabody share of Middlemount for a dollar + some portion of the $130m that Peabody is owed.

The risk does remain but Yancoal's action do read like they are sticking with Middlemount to me. (FWIW)

Cheers
pb

Please DYOR