RE: RE: RE: Is YLO going to default?
YLO has already paid more debt as one poster has noted. The bankers acceptance of $35 million has been cleared. The 2nd tranche of the credit facility is cleared and now they have paid the first tranche down from $250 million to $205 million... and that was as of a few weeks ago.
IMHO, they should be able to clear the credit facility and the 2013 MTN's on time. With that debt cleared, they should have little trouble being able to refinance the 2014 MTN's or a portion of it, if they need to.
Note, it is the provisions of the credit facility due in 2013 that is affording the present investing environment including the restriction YLO cannot seek out new debt. Once the credit facility is paid down or cleared along with its restrictive provisions, and assuming the revenues do not degrade significantly from here, do you think YLO will have much difficulty obtaining new debt?
Once cleared, the credit facility is cleared they should be able to negotiate another one with more favourable terms.