Ann: Contingent Liability Update, page-6

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maradyne

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30/03/18

10:47

Post #: 32138878
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Originally posted by maradyne ↑

Valueadd this is the $ 300,000,000 that we were told was due in April 2018 so yes it has been rolled over but Gindalbie has ""NO FULL RECOURSE DEBT OVER THIS LOAN " which traditionally means i think they can not chase us for assets outside of the original project ( they can sell all Karara's assets but not Gindalbies )

A limited recourse debt is secured up to a certain amount. For example, a loan on which 40% of the principal is collateralized is a limited recourse loan. A limited recourse debt falls somewhere between an unsecured and secured loan, and has interest rates that are typically lower than unsecured debt because of its relative safety. Often, a limited recourse debt contract is structured so that the debt transitions to unsecured, or non-recourse, debt pending the completion of a specific event. That event may be the completion of a project or the establishment of a specific revenue stream for which the debt was issued. For example, terms for limited recourse debt for a large project such as a power plant could mean that a creditor is guaranteed to receive 25% of the principal in the event of a default up until completion of the power plant.

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Originally posted by maradyne ↑

Valueadd this is the $ 300,000,000 that we were told was due in April 2018 so yes it has been rolled over but Gindalbie has ""NO FULL RECOURSE DEBT OVER THIS LOAN " which traditionally means i think they can not chase us for assets outside of the original project ( they can sell all Karara's assets but not Gindalbies )

A limited recourse debt is secured up to a certain amount. For example, a loan on which 40% of the principal is collateralized is a limited recourse loan. A limited recourse debt falls somewhere between an unsecured and secured loan, and has interest rates that are typically lower than unsecured debt because of its relative safety. Often, a limited recourse debt contract is structured so that the debt transitions to unsecured, or non-recourse, debt pending the completion of a specific event. That event may be the completion of a project or the establishment of a specific revenue stream for which the debt was issued. For example, terms for limited recourse debt for a large project such as a power plant could mean that a creditor is guaranteed to receive 25% of the principal in the event of a default up until completion of the power plant.

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As Gindalbie does not have an unlimited recourse guarantee for this Facility, if required, it will provide a limited recourse guarantee to Ansteel, limited to the extent of Gindalbie’s shareholding in KML in accordance with the shareholder vote in November 2015.

Strange thing is that it states here "IF RQUIRED " almost stating we have no guarantees over this loan at the time loan is drawn ?????????

GBG Price at posting: 2.0¢ Sentiment: Buy Disclosure: Held
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Ann: Contingent Liability Update, page-6

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