I reckon the main problem facing MFS is they hold a lot of money in funds, and they are going to have to find that money in 180 days time. I don't think they can get an further extension.
I don't think insolvency is an issue at all, at least in the short term, until after they start paying that money back. It's "trust" money but it's still money that MFS has.
Of course they are facing a complete withdrawal from the funds. Whether that's a problem or not is what I want to see the figures on. I think what IS a problem is the correction in the equity markets, especially in the financial stocks. To me that means earnings for MFS over the 180 days won't be great. And it's a bad time to sell as everyone knows. Maybe the correction has bottomed and things will pick up - giving better commissions over the next 180 days - enough to keep the MFS show, or should it be Octaviar show, afloat - let's hope so!
MFS
mfs limited
