MOL had an agreement with TCW to repay the loan in full by the 15th Feb without any penalty. Bacause of final approval not being available they put the approval back to 15th March. TCW agreed on a further US$1.005mil additional interest if the loan was paid by the 24th March. They would need to get TCW to agree to a new agreement if they wish to extend behond that date.
Thats how it stands, Fisher spoke on Boardroom Radio a few weeks ago and said that Hanlong were moderately confident of being able to meet these conditions. Saying that he may of been covering his a#se, he did'nt sound to confident in the Chinese banks, thats why the board have given them to the 30th April. I agree that Hanlong will not be happy seeing US$38.5mil going from the US$60mil loan to MOL into TCW coffers.
MOL Price at posting:
87.0¢ Sentiment: LT Buy Disclosure: Held
