At Dec2016, it owes $400M.
Since then,
- sold 1 vessel for $4.5M [received on 23rd Feb2017. See note to H1 report]
- 5 more in advanced negotiation. Book value of vessels held for sales totals $57.380M. Minus $4.5M for the 1 settled in Feb, there's $52M... say they can't sell for what their consultant reckons they could... Half that so its $25M?
- Bases and slipways sold. $44.1 + $8.7 = $52.8M.
Total debt repaid = $52.8M + 25M = $77.8M.
Debt outstanding at end of June 2017 expected, from above calc., 400- 77.8 = $322.2M
Couldn't find the updated interest rates, so it could be higher than the last reported 3.77% average? Maybe the revised agreement kept it the same. I mean, they're trying to let MRM live here, not kill it. And there's now less debt, less risk.
But let's say interest is 5%... on $322M = $16M.
There are work. About half as previous, but money does flow in. There's the new efficiency gain [firing people]; renegotiated wages; there's money in the bank that also earn about $1M in interest.
Death might be exaggerated.
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As to one of the syndicate selling its debt to someone else. They will also sell on the new condition. That condition states that they cannot call on any more principle repayment until sept 2019.
So unless interest repayment cannot be met, leave them alone man.
That and bankers aren't doing what they're doing to MRM because they're being nice. There's $400M owed to them, push MRM into a bankruptcy and watch if they could get anywhere close to that $4ooM back.
As they say, when you owe the $100K the bank own your azz. When you owe $100M, you own their azz.
$322M is actually not that much on the scale of things. Particularly small when you consider that at least half of that is normal debt taken on year after year for operation.
Hard to see how any banker would want to risk $322M to push for bankruptcy over what is essentially $150M or $160M.
But anyway, let's wait and see.
MRM Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
