Don't agree that debt load is so big. 30,000 PIs each buy in for 5k would raise 150m sterling. Enough to buy out a tranche of bonds. Naturally would expect to be paid 10% income. Before discounting this option bod should ask the owners on the preferred option.
The next KRG payment, or maybe 2, will be crucial really. Based on the POO rising significantly in recent weeks, the KRG need to show intent and bolster confident in us, by boosting the payment size. We cant carry on with only $15m a month with the bond on its current terms/timescale.
FlyingHorse... Unfortunately, the debt load is to big to attract any new equity investor, and lenders would not give a haircut with nothing in return.... the question is what is the level of dilution going to be after a debt to equity swap? Bear in mind the larger the need for liquidity to finance the working capital the larger the dilution. As for the KRG... don't expect any support other than the on-going monthly payments (when and if any)
PIs must reject an option that involves dilution in favor for bondholders. Don't believe this is imminent as still a year to go. Krg need to pay their dues however PIs should lobby bod to offer option for right issue at agm. With the right deal as a PI am happy support capital raise - no brainer and am not sure why bod are not talking to genuines.
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