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06-05-2017, 02:16 PM
(This post was last modified: 06-05-2017, 02:25 PM by CY09.
Edit Reason: Edits
)
Hi Boon,
The issue is that banks are not willing to refinance despite (i) prompt payments, (ii) data from comparable transactions which shows FSL's fleet has the cash to continue servicing the debt and (iii) good valuations. Clearly, something else is stopping/whispering to the banks to finance FSL. We can argue how strong business fundamentals are relative to repayments, but we also know business in the real world is not that straightforward.
Imo as well, it is highly unlikely the SIC in MAS will reject this transaction and the outcome will be down to how many shareholders voting against it
The issue is that banks are not willing to refinance despite (i) prompt payments, (ii) data from comparable transactions which shows FSL's fleet has the cash to continue servicing the debt and (iii) good valuations. Clearly, something else is stopping/whispering to the banks to finance FSL. We can argue how strong business fundamentals are relative to repayments, but we also know business in the real world is not that straightforward.
Imo as well, it is highly unlikely the SIC in MAS will reject this transaction and the outcome will be down to how many shareholders voting against it