Wednesday 19 April 2017 by FIIG Research ripples_on_water Company updates

Mackay Sugar asset sale programme - Potential impact to bondholders



In late 2016, Mackay Sugar (MS) engaged Kidder Williams (KW) to consider capital raising options. While we are still waiting for the company to provide additional information, we wanted to update bond investors regarding the current situation and on information disclosed in the KW report.

In summary the company has a significant tangible asset base which should, in most scenarios, more than cover all debt liabilities. However, if MS is unable to get support from its senior lenders, have growers agree to increase the levy and is unable to achieve timely asset sales, there is potential that the repayment of the unsecured notes could be delayed from the final maturity date of 5 April 2018.

The full report on the update is available here.External link - opens in a new window