Where to ...supply base?, page-22

DangInv,

I agree with most of what you have said:

"

Under the new terms of the facility, MMA’s previous scheduled amortisation payments of $75 million per annum and the
deferred 31 December 2016 instalment of $37.5 million, have been replaced by a single principal repayment of $45 million
to be paid on 30 June 2017, with the remaining balance of the Facility to be repaid at the termination date.
The term of the facility has also been extended to 30 September 2019.
The principal repayment at 30 June 2017 is expected to be funded primarily from the proceeds of the proposed sale of the
Company’s Dampier Supply Base and Slipway.
The Company will also apply any proceeds received from the non-core vessel sales programme and the sale of its 50%​

share of the Broome Supply Base towards the prepayment of the remaining balance of the Facility."


I rekon their would have been an inc in cost of funds......

essentially - the banks are letting MRM continue tradeing (otherwise they wont get their $$$ back), and are obviously hopefull of a rebound in oil prices, leading to an increase in utilisation rates, and then MRM may have the ability to
a. refi the debt
b. recap the company

or a combination thereof.

given debt/equity ratio - I suspect "b" remains a possibility.

as you said - it shouldn't go under - but it may get "smaller" (ie additional asset sales) to survive.

rgds
Value_Hunter