News Wrap

IN THIS morning’s News Wrap: Chinese steel prices slide to lowest in 12 years; KKR taps banks for Bis Industries debt deal; and Macmahon set to reduce debt as bank talks are extended to June.

Lou Caruana

Chinese steel prices slide to lowest in 12 years

Chinese prices of steel used mostly to build homes and offices fell to a 12-year low as peak construction season begins to ebb in the world's biggest consumer, according to the Australian Financial Review.

The average spot price of steel reinforcement bar, or rebar, dropped for a 10th day to 2458 yuan per tonne, the lowest level since January 2003, according to data from Beijing Antaike Information Development Co.

KKR taps banks for Bis Industries debt deal

KKR & Co has asked lenders to mine-site trucking company Bis Industries to push out covenants and extend the terms of a $1 billion debt package as part of refinancing discussions initiated in recent weeks, according to the Australian Financial Review.

It's understood KKR and its lenders are locked in talks about what the mining downturn means for the future of Bis earnings and cash flows, and the private equity firm intends to help Bis reduce debt, given the outlook for key commodities including iron ore.

Macmahon set to reduce debt as bank talks are extended to June

Struggling mining services company Macmahon Holdings is expected to emerge from extended talks with its banking syndicate with a substantially smaller debt facility, after carrying out a restructure of the company to satisfy its lenders, according to the Sydney Morning Herald.

The company, which entered a 90-day review period with its lenders after it lost its largest mining contract in February, said on Monday it had extended the talks until June.

topics

loader