RE: RE: gce Cooper90: Here's the latest from Reuters that states that Fitch believes that Winsway has enough liquidity to proceed with the buyout of GCE. Go have fun. GL
Fri Jan 20, 2012 2:41am EST
(The following statement was released by the rating agency)
Jan 20 - Fitch Ratings says that allegations made by Jonestown Research against Winsway Coking Coal Holdings Limited (Winsway, 'BB'/Stable) do not immediately affect the company's liquidity or broader credit profile.
Fitch notes that allegations by short sellers on Chinese companies in the past, whether proven or otherwise, have resulted in at least a temporary curtailment in access to capital markets. The impact of allegations such as these are discussed in detail in Fitch's commentary of 29 September 2011 entitled "Whistleblowing Short Sellers a Double-Edged Sword".
Winsway has begun refuting the allegations made by Jonestown Research, which relate to the valuation of inventory and related party transactions. Fitch however believes that Winsway does not need to access capital markets in the near term as it has sufficient liquidity. As of June 30, 2011, Winsway had HKD5.76b cash at hand while the current portion of loans was HKD572m. This balance, along with cash generated from operations, should be sufficient to meet capex needs and the proposed acquisition of a 60% stake in Grand Cache Coal Co. Ltd.