If the debt is only incurring 4% interest, shares are worth very little and the next covenant test will be in July then a debt for equity swap is premature, not to mention wiping out shareholder equity. It's worth noting that restructuring costs don't count towards underlying EBITDA on which the covenants are based. This suggests that if no government support for Whyalla is forthcoming and the IO price deteriorates then the closure of the plant will be brought forward to reduce the operating loss. Next week should be very interesting.
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