the australian article, page-9

If the Libor+ 600bp argument is true and with CBA's antics thius far, It will be rightfully perceived by the market now that CBA is increasingly looking like a loan shark, hiding behind government protection.

A strong legal argument could be made. CBA is acting unconscionably.

The project is 95% complete and the capex spend is more or les done is my view.

If the banks rollover the $319m, that should see OZL thru to completion and more capex and opex can be taken out of the company is my view to improve margin again, like AM's salary for a start :-)

But CBA last minute tantrums to get what they want, if true, is very sneaky especially when im sure the syndicate has come so far, come 95% of the way. Its starting to look like a low ball, unaustralian act by CBA.

Remember my Strategic National Asset arguments, I really liked the Century's Indigenous worker population one(20% of the mine)argument, smaller but very powerful. e.g Does CBA (hiding behind a new government gurantee want to force shutdown of OZL's Century mine which has a huge indigenous worker base over such a small relative debt and 13% gearing overall. Its a disgrace... and will be forever a national one.

OZL is a 100% viable company with great assets and is developing into a new national champion...and should not be being treated like ABC or Allco forced to the brink, as it will force an asset of strategic national importance in PH with $50B in revenue over its mine life that will generate >$25B in taxation revenue for Asutralia to be shut down and /or sold for song to an offshore buyer like Xstrata again(after MIM) or global behometh like BHP (which is a UK company masquerading)? The US, the Brits and the French would never allow it.


Receivership on OZl would be a massive injustice and the law suits would fly between all parties and the other banks wouldnt ever want to deal with CBA again either.

CBA would never recover. No company would want a loan from them. No syndicate would form with them. They would gain loan shark status accordingly and be lender or syndicate member of last resort if they did.

OZL cash burn is manageable with prudence, good management and a spending covenant but low ball acts by rogue banks are not manageable without the Treasurer's big stick on the banks during a credit crisis.

Just my humble punters view.