GREY:FRNFF - Post by User
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Parentheticalon Dec 31, 2015 10:09am
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Post# 24421514
Multilateral Institutions to the Rescue?
Multilateral Institutions to the Rescue?Those taking solace in the recent credit line by euro banks (with a brief to help developing economies) may wonder what happens should the chronically loss-making Feronia default? Already CDC, which is owned by the British govt is the largest shareholder of Feronia. Moreover it does not have a brief to back non-Commonwealth economies. This looks like a case of style-drift which CDC have been slammed for before.
Where do minorities stand if CDC have to come in and bail out their own investment? Squeezed to nothing is the answer!
The stock upticked on the news before cooler heads realised that this corporate vehicles is loaded to the gunwhales with debt and the slightest wave will send it to the bottom. It could be expected to retest the 12 month low of 7 cts again in the coming year.