Were you referring to the first accelerated repayment that's now delayed?
Maybe MRM really couldn't make the payment. But it's not a default when the bankers agreed to it.
If we were to interpret the demand for accelerated repayment as bankers worrying about MRM as a going concern; then maybe we ought to interpret their decision to allow deferred repayment as them seeing signs that ease the worries.
These signs include the recent win/s, the real prospect of oil price increasing next year (and the benefit that will flow to such operators as MRM).
Without seeing the terms or talking to the bankers, we're just speculating here. But since I want to believe that I invest in a few shares as though I invest in an entire business... I'm comfortable that MRM as a business will survive through this cycle and my investment will not make a lost even with a capital raising.
When will the investment work out? Hopefully within a couple of years. But yea...
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Not sure why the market is so overly concern with MRM's cap raising or debt level. Especially when you compare both their ratios and quantity in relation to such gem as APA. When a credit crunch hit, APA will be lucky to sell for $4.
MRM Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
