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.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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Not a lot of transparency here.
certianly isnt…. i reckon longs and shorts equally as nervous as each other
tis why standing aside is also a position…
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
Thanks
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?
I’m not sure that’s a good enough reason for a trading halt.