FMG – Is this stock ripe for the picking?

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

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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

JPMorgan

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”

Deutsche Bank

Credit Suisse and RBS

~~ Stock Picks and Stuff from JJ ~~

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