OTCPK:PALDF - Post by User
Comment by
99999goldon Aug 22, 2014 8:50am
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Post# 22868232
RE:loan agreements
RE:loan agreementsits actually down to 15% - they paid 6 million to get it down to that - that is the achilles heel of NAP, however with palladium prices seems to be holding above 850/oz the prevailing theory is so long they continue to produce they can pay down debts and eventually get that interest even lower - even at 15% that's still high almost mafia like vs. your typical debt financing rates of 6% or thereabouts. they will still need palladium to be over 1000/oz to be at break even point, some say 1400/oz - even with by product credits.
it'll take another 3-4 quarters to really see where this company is going, the likelihood of bankruptcy is high - however why pay 6 mil if you know the company is going under to lower the interest rate on those debts - why not just default and call it a day? I'm sure they're working to get that debt restructured but they need to show they're meeting production.