MRM 0.00% 33.0¢ mma offshore limited

Time to off-load this Mermaid, page-37

  1. 2,211 Posts.
    lightbulb Created with Sketch. 48
    It's extremely unlikely it will go broke but not impossible. The directors have been explicit about the financial position as posted earlier.
    "In response to the difficult trading
    conditions experienced during the past
    year, in February 2016 the Company
    agreed a number of amendments to
    the terms and financial covenants of
    its Syndicated Loan Facility with the
    members of the Syndicate. On 24
    August 2016, the Company received
    approval of some further amendments
    to the terms and financial covenants
    of the Facility and committed to
    an increase in the annual principal
    repayments over the remaining term of
    the Facility to $75 million, payable in six
    month instalments of $37.5 million, with
    the first payment due on 31 December
    2016. The principal repayments will
    be funded from the proceeds of the
    Company’s ongoing vessel sales
    programme, operating earnings
    and any additional funding options
    available to the Company."
    I think operating earnings are negative in this half, the vessel sales haven't achieved what they wanted. To clarify they are still building vessels in this half, next year they look to be in the clear IMO.
    Why wouldn't I wait until the 31 Dec or March? when the half year result comes out to see what "additional funding options means"?
 
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Currently unlisted public company.

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