This will please their bankers and with current difficult lending environment, I think it is a good result. Definitely on the right path.
This should buy them extra time and hopefully get an extension to their debt for a decent period (say 1-1.5 year) to have an orderly selldown (as long as the interest applied is not excessive, then it would be good news).
Remember, interest bill has been paid on time, underlying busines is strong, issue is capital market's inability to refinance. This is a real business with real assets and cashflow supporting it.
This is no different to say you making your mortgage repayments on time, but the bank is unable to raise the funds to provide you the mortgage. Markets will change…. Hopefully…
CNP Price at posting:
9.0¢ Sentiment: LT Buy Disclosure: Held
