The AFR is talking up the latest round of Atlas restructuring talks:
Atlas Iron has asked secured bondholders to consider receiving equity in lieu of interest payments, while contractors would operate for minimal cost in exchange for compensation when – and if – the iron ore market improves.
Where’s the upside for bondholders? The iron ore rally isn’t going to run much further. We may see others but the great likelihood is that prices will at least halve from here. As it does, more iron ore mines will go belly up and the global market of cheap second hand mining goods will turn into a flood. For example, Caterpillar sales have fallen every month for 28 months:
