Although Mac has bought some, the majority has been via their dividend reinvestment plan, which they are well aware will not drain much needed cash from MCW.
The 1/2 year announcement was carefull to state the debt coverage was predicated on all the remaining US store sales settling. Given a large % did not even stack up in due diligence it is likely an even larger % will not pass muster with the banks.
What this means is that the stores which did not pass purchaser due diligence are currently overvalued against their 31 Dec 08 values(ie need further devaluation to meet the market)and proceeds which would have retired debt will not be received - a double hit. Maybe this is why they have recently sent agents around the private trusts trying to offload some pretty good income producing properties from all Australian states.
MCW Price at posting:
11.5¢ Sentiment: None Disclosure: Not Held
