ACI also has a high debt load with large interest payments, falling demand for the product that it sells, big management salaries, lots of bills to pay, etc. The 700 million will not last long unless coal demand pick up. Something that is unlikely to happen.
Markp: Could you please provide a reference for your statement. According to ACI's web site the swap has only been extended to 9/23/15. (My question is not intended to be confrontational; there are a lot of news sources, and its easy to miss something; so I would really like to know where you heard this. Thanks)
This does not have any effect on coal. Coal is going down because of new competition from solar, wind, and natural gas. If Calpers was smart, it would have long divest out of coal.
But the market value is only $130 MM; this makes no sense.
They generated billions in sales the last several years.
How can they be valued so low ? Someone should buy out the company at that rate - millions to be made
youbeenwarnwarn could get downgrade coming anytime now
Obviously there's a lot of traders who expect BK after the current deadline expires. Today October $0.50 strike puts traded at $0.05. I bought January $1 strike puts at $0.20-25 about ten days ago. Tried to get more today at $0.30 - no luck. Game on!