It's extremely unlikely it will go broke but not impossible. The directors have been explicit about the financial position as posted earlier.
"In response to the difficult trading
conditions experienced during the past
year, in February 2016 the Company
agreed a number of amendments to
the terms and financial covenants of
its Syndicated Loan Facility with the
members of the Syndicate. On 24
August 2016, the Company received
approval of some further amendments
to the terms and financial covenants
of the Facility and committed to
an increase in the annual principal
repayments over the remaining term of
the Facility to $75 million, payable in six
month instalments of $37.5 million, with
the first payment due on 31 December
2016. The principal repayments will
be funded from the proceeds of the
Company’s ongoing vessel sales
programme, operating earnings
and any additional funding options
available to the Company."
I think operating earnings are negative in this half, the vessel sales haven't achieved what they wanted. To clarify they are still building vessels in this half, next year they look to be in the clear IMO.
Why wouldn't I wait until the 31 Dec or March? when the half year result comes out to see what "additional funding options means"?
MRM Price at posting:
28.5¢ Sentiment: None Disclosure: Not Held
