we need asset write-ups of 17%...

I'll have another go at posting this.... I accidently posted this in the MST forum, Ooops!! Here goes again...

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Currently we have a loan to value ratio of approx 76%, and this has resulted in MDT being in breach of Loan to Value covenants with our lenders (which I believe their limit to be 65%). In order for us not to be in breach of LVR covenants, I have calculated that we would require asset write-ups of approximately 17% (this equates to approx 25% of the value of the write-downs).

With record low interests rates in the US expected to remain unchanged until the second half of 2010, I fully expect that we will start to see asset write-ups in the 2nd and/or 3rd quarters on 2010.

Provided we can renegotiate and/or extend the Head Trust Loan that matures March, I think we're looking pretty good.

Of course the write-ups & refinancing of debt isn't going to be as smooth & straight forward as it sounds, but with competent management & an improving US economy, I strongly believe we'll get through this.

Cheers.