Sorry, I am confused. CS have 22 million of bnds money that they...

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05/08/14

17:21

Post #: 13773430
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Originally posted by mc117 ↑

Damascus, I said the same a few weeks ago and thanks to posts by petergm and others realised I was wrong. From the Q4 report:

"At 30 June 2014, cash at bank was $72.4 million, $22.6 million of which is currently securing bank guarantees."

From a press clipping a couple of years ago:

"Bandanna has accepted a senior secured bank guarantee facility with Credit Suisse for AU$67.3 million. The new arrangement with Credit Suisse releases AU$50 million cash that Bandanna has previously used to secure guarantees required under the Springsure Creek project's fully contracted port capacity for Stage 1 of the Wiggins Island Coal Terminal and related rail access agreements."
Source: http://www.abnnewswire.net/press/en/73078/Bandanna_Energy_Limited_(ASX:BND)_Update_on_Springsure_Creek_Project.html

If you take 22 from 72 you are left with 50, and if CS withdraws its facility, that 50 flows out again, leaving nothing to carry on the business. Hence the comment in the QR:

"Should Credit Suisse decide to withdraw the current Guarantee Facility Agreement prior to Bandanna Energy securing funding for the Springsure Creek Project, Bandanna Energy’s ability to continue as a going concern and meet its debts as and when they fall due, will be dependent on the ability to secure alternative funding or to raise equity at that time."

Most people probably knew all that anyway, but I didn't until prompted to read up, and others new to the stock/thread might not.

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Sorry, I am confused. CS have 22 million of bnds money that they are holding as security for future take and pay comittments. If cs pull out of the agreement, the money is released back to bnd.

BND Price at posting: 8.4¢ Sentiment: Hold Disclosure: Held
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Sorry, I am confused. CS have 22 million of bnds money that they...

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