Is WLD in danger of breaking bank covenants ?
It seems to me with such large loans against their vessels, WLD needs to be shipping cattle! Apparently 2 of 3 ships are empty and there is logistic problems in South American.
The company has also said that it feels that it is going to take two years for the Australia herd to rebuild and for prices to fall so that the price of live cattle is competitive from Australia into Asia.
There has also been talk of bad debts on their books from insolvent customers.
How real is the solvency risk? Comments?
I would happy buy stock at these levels if I was certain the company was still going to be here in two years.
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