Quick Update On Lynas:
Lynas owes Jogmec/Soljitz US$205 million. They are referred to as the senior creditors and interest rate payable is 6.5% p.a
It technically also owes US$225 million as bonds held by Mt. Kellet with annual interest of 2.75%
On their last submission to ASX, Lynas informed their shareholders that:-
1. All interests due to the creditors from May to Sept 2016 are postponed to Dec 2016
2. The US$2 million payable on 30 June 2016 to Soljitz will be paid thru special redrawing rights agreed upon by both Lynas and their creditors from the restricted JARE account. (What it means is that the US$2 million will be taken from the pool of interests paid by Lynas to both the creditors.
3. The JARE restricted account has a balance of US$1.37 million. Lynas needs the sum and has acquired permission from the creditors to allow them to withdraw it completely. It shall be paid back by Lynas in Dec 2016.
There will be no penalty or interests charged for these arrangements. Therefore, please judge for yourself the chances of Lynas' continued survival in operating the RE business.
Save Malaysia! Stop Lynas!