"Beadell has agreed to work with MACA to seek to put in place subordinated security arrangements for the loan, subject, among other things, to receipt of appropriate consents from existing financiers"
Why would a financier be prepared to have their loan subordinated to repayments by MACA as the financier risk will have increased for no advantage ie a higher interest rate is this not similar to going from say A credit investment bonds to junk bond status which require a higher interest rate to justify the risk ?
I can not see the advantage to BDR here if their current loans get subordinated resulting in higher interest rates - I am not a banker so may be completely wrong on this
BDR Price at posting:
6.8¢ Sentiment: None Disclosure: Not Held
