The news is not good , but does that mean an opportunity for some or is just the beginning of the doom and gloom for the iron ore sector. Fortescue Metals Group currently is feeling the pain of the leaked news of them seeking waivers for their debt.
FMG SEEKING DEBT WAIVER
Shares of Fortescue dived the most in almost four years on Thursday after a report that the company had asked its lenders to waive all debt covenants for the next 12 months. Fortescue Metals has had $1.5 billion wiped from the value of its market capitalisation
Who FMG OWES MONEY TOO ?
According to Loan Pricing Corp data Lenders to fortescues include
National Australia Bank
Commonwealth Bank of Australia
Westpac Banking Corp
Australia and New Zealand Banking Group
Bank of America Merrill Lynch
Analysts have said that “If the iron ore price remains around current levels then we suspect Fortescue will need to source at least an additional $1 billion of funding in the near term and around $4 billion over a two year period to bring gearing down to the 30-40 percent target”
Credit Suisse and RBS