Post by
Sogosohubidu201 on Nov 26, 2019 9:59am
To extend the remaining debt for 2 years to Jan 1, 2023
The reason that Glencore to extend the remaining debt of $1.5 billions for 2 years from January 1, 2021 to January 1, 2023 is that Glencore is not planning to take Katanga private currently. Otherwises, Glencore did not need to extend the maturity of the debt. Howevre, Glencore can always change its mind. Many on this board may still have chance to get out profitable or breakeven in the next 2-3 years considering the big trend for huge upcoming demand of cobalt and copper, and also eliminate $7.6 billions Canadian dollar debt will save about $520 millions Cdn annual interest charge, and the earning and free cash flow will be really good in the next 2-3 years. But it does not change the fact that this is a big mistake for KAT shareholders on this board.
(......Glencore conceded that approximately $1.5 billion of the Glencore Debt would remain with the Company. Glencore also agreed to extend the maturity by two years to January 1, 2023. The interest will be capitalized to the extent the Company has insufficient cash to pay it when......)