Sep 23 2009, 07:12 PM
QUOTE(aurora97 @ Sep 23 2009, 05:46 PM)
the part highlighted in bold, i believe the company should have made provisions for it in the first place.
Also note, Oilcorp did write to the trustees on the 15th (interest was payable on the 17th), 2 days prior to the payment date asking for grace period... Hence there was deliberate intention to default on interest by oilcorp.
It is also further noted, the Bank (and its associates/cohorts) did not exercise its rights i.e. to trigger an event of default which would entail the payment of interest + principal sum. (event of default = is a discretionary instrument/remedy of the Lender).
My assumption would be grace period has been extended to Oilcorp. (i.e. providing proof of Large Receivables due to Oilcorp in exchange for grace)
Question:
Why 2 days notice to the Lenders?
***
Speculation only
In any case, defaulting is bad (impact of credit rating - in this case i doubt OilCorp has an investment grade rating, more likely than not they have to give collateral up to their eyeballs), nonetheless whether investors like it or not "default" is a common occurence. Some are announced to the world at large in this case Oilcorp and others... perhaps we will never hear of (this part i say with some experience).
OilCorp lenders played it by the book to protect their interest, my assumption is OilCorp didnt exactly have an impressive track record that is why they did what all Lenders whom have followed the book should have done especially for a PLc.
***
Finally, its all assumptions, let see how it plays out.
Anyway - they are in PN17 now.Also note, Oilcorp did write to the trustees on the 15th (interest was payable on the 17th), 2 days prior to the payment date asking for grace period... Hence there was deliberate intention to default on interest by oilcorp.
It is also further noted, the Bank (and its associates/cohorts) did not exercise its rights i.e. to trigger an event of default which would entail the payment of interest + principal sum. (event of default = is a discretionary instrument/remedy of the Lender).
My assumption would be grace period has been extended to Oilcorp. (i.e. providing proof of Large Receivables due to Oilcorp in exchange for grace)
Question:
Why 2 days notice to the Lenders?
***
Speculation only
In any case, defaulting is bad (impact of credit rating - in this case i doubt OilCorp has an investment grade rating, more likely than not they have to give collateral up to their eyeballs), nonetheless whether investors like it or not "default" is a common occurence. Some are announced to the world at large in this case Oilcorp and others... perhaps we will never hear of (this part i say with some experience).
OilCorp lenders played it by the book to protect their interest, my assumption is OilCorp didnt exactly have an impressive track record that is why they did what all Lenders whom have followed the book should have done especially for a PLc.
***
Finally, its all assumptions, let see how it plays out.
http://www.klse.com.my/website/bm/listed_c...ments/index.jsp
Quote
0.0402sec
0.39
7 queries
GZIP Disabled