It has been over 3 months since rumours of a sale process.
It has been over 2 months since expressions of interest were requested.
Surely there should be a resolution to the sales process, if in fact Redbank has been sold?
Lets face it, Redbank was delivering $26.4m in EBITDA it only has to sell at a 7.2 X multiple to recover the debt. this is a very low multiple for a base load electricity supplier.
The lenders & Kordamentha are absolutely nuts!
They are much better at restructuring the debt with AEJ, this will provide AEJ with certanty, it will drive up the AEJ share price and then allow AEJ to raise equity on market and pay down some of the debt say in one to two years time. The EBITDA it makes is more than adequate to sustain the debt levels, it just needs soem common sence to prevail.
Dont forget Redbank has been in the hands of the Administrator for nearly 1 year so it has generate cash and has paid down further debt and made its interest payments. That would mean the debt levels should be below $180m subject to the extorsion that Kordamentha has extracted!
AEJ Price at posting:
$8.00 Sentiment: Hold Disclosure: Held
