AFR: Fortescue to get debt relief?

The AFR is reporting that:

Fortescue Metals Group has entered a trading halt after having progressed discussions with its lenders about relaxing some of its debt covenants “significantly overnight”. It expects to make an announcement about a restructuring of its bank facilities before the start of trading on Tuesday.

Wonder what ore price assumptions the banks are using…wonder how close FMG is to triggering the covenants? Not a lot of transparency here.

Comments

  1. Is anyone else having trouble getting into their MB account to edit the profile? I open up another and had the same problem. I just want to put in a profile photo.

    Mod: use gravatar.com to do so

  2. dumb_non_economist

    HnH,

    I have a mate who works for a contractor to FMG, his work is not really that portable. What is likely to happen to FMG if prices remain low, will someone simply move in and pick up a large slab of the company and it continue on or what?