All these listed companies have an ultimate weapon. Ask shareholders to foot the bill.
Say yes, you will not lose at now and there is a very small chance of losing less later but a very high chance of losing more later.
Say no, you lose all now.
Make choice.
Another potential Chapter 11 candidate ?
Normally I dun bother waste time looking too much at companies in struggling sectors, but this morning came across this gossip which led me to this article on local motley fool website...
Crucial Investing Lessons From Marco Polo Marine Ltd’s Woes
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When times are good, a heavily indebted company can easily borrow new money to repay old debt. But when times are tough, refinancing can become awfully difficult. Billionaire investor Warren Buffett has the best quote on this I’ve ever come across and I think it bears repeating (emphases mine):
Quote:“Leverage, of course, can be lethal to businesses as well. Companies with large debts often assume that these obligations can be refinanced as they mature. That assumption is usually valid. Occasionally though, either because of company-specific problems or a worldwide shortage of credit, maturities must actually be met by payment. For that, only cash will do the job.
Borrowers then learn that credit is like oxygen. When either is abundant, its presence goes unnoticed. When either is missing, that’s all that is noticed. Even a short absence of credit can bring a company to its knees.”
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GoSSip from wikipedia:
In January 2014, Vivian got engaged to 36-year-old Singapore businessman Sean Lee of Marco Polo Marine Limited.[5] They held a wedding ceremony in Bali, Indonesia on June 26.[6] Vivian announced her pregnancy in March, 2015 via Facebook calling the pregnancy a "surprise" and "heaven sent" and said it came at a time when the self-professed workaholic promised to clear her work schedule in 2015 to focus on starting a family.[7] On the 13th of August, she gave birth to a boy.
[Image: Vivian4comp.jpg]
She must be pretty happy, hubby can spend more time at home in the future...
Marco Polo Marine Noteholders Approve Restructuring of Its S$50 Million 5.75% Fixed Rate Notes due 2016
Highlights :
* 172 votes or 97.18% of the total votes cast were in favour of the Extraordinary Resolution tabled to restructure the debt arising from the Notes.
* Principal terms in connection with the restructuring of the debt arising from the Notes are:
- Extension of the Ordinary Maturity Date of the Notes for a period of three years;
- Additional Interest at the rate of 1.5% per annum to be paid on the Notes, such additional interest payable in two instalments; and
- Grant to Noteholders of a second ranking mortgage over land with an approximate area of 152,750 square metres in Batam, Indonesia.
approve, kick the can down the road to 2019, + (5.75%+1.5%) = 7.25% interests! :O
strong banks support leh! wonder which are the banks? :O