I find it an interesting, though not surprising, detail that the financiers are not taking action regarding the covenant breaches. I believe this indicates that there is an open dialogue between the company and the financiers, and that the financiers trust the company’s management to at least some extent. Of course, it would also be foolish to slaughter the pig at this stage.
June is exciting for reasons beyond just the ramp-up of the Kilpilahti plant. By the end of the month, we should receive a press release regarding the refinancing of the maturing loan, especially if they have to resort to an emergency rights issue. I believe the announcement will come alongside an operational status update by the end of the month. The success of the Kilpilahti plant’s ramp-up will have a massive impact on the resulting loan terms. If the ramp-up schedule fails again, it’s unlikely they will succeed in modifying the terms of the maturing loan without egregious changes in favor of the financiers. I personally still believe we will see a combination of a bridge loan and a large rights issue in the summer or by autumn at the latest. As things stand, I intend to participate in the offering.