When the Hanlong deal came along TCW agreed to be paid out without any penalty payment.
The deal was to be finalised by the 15th Feb, this date came and went.
On the 1st March MOL put out a Ann: stating Hanlong was having trouble getting SAFE approval because of the Chinese New Year????? TCW had agreed to a extension but wanted SAFE approval by the 15th March and payment of the loan by the 24th March only adding an extra US$1005mil in interest no penalty.
If these time frames were not met,TCW would require interest payable had the loan gone its original term.
Now the question is can MOL get TCW to agree to a new deadline. This whole deal is turning into a circus, its normal business practice to allow for any unforeseen delays, who is to blame, Bankers, Chinese regulators, I am sure its not MOL.
Hanlong have about 5 weeks to complete this deal come the 30th April its on or over red rover.
We cannot take for granted that alls well however I am confident that they can get over the line, this is to good a deal for them to miss out.
MOL Price at posting:
83.0¢ Sentiment: LT Buy Disclosure: Held
