Tangible Net Worth Must Exceed $3B to be onside covenant
The $6B write down of the Pascua mine alone will put the debt covenant issue into play. Obviously accounting tricks to keep net worth at $3.1B just to meet the covenant will be insufficient.
Over the coming months, the priority issue facing ABX is not Pascua, or falling gold prices, or collapsing margins, or inept management. It is insolvency. Bondholders will act quickly to preserve whatever they can salvage.
if the company is not making money at these metals prices, how do they pay $1B in interest charges alone every year? That's how companies get pushed into BK. The creditors want their money back and they file a claim.