OK guys I think Mudajaya can get about RM1.5 billion (26% on sale) upon completion of the plants as their CEO says after much analysing...then pay off all their borrowings and have a few hundred million balance (maybe 3 or 4 hundred). So the fair price should go back up to about RM2 to 3.00 (with Menara and other valuable Ampang assets) plus RM2 billion contracts at hand.

Changed my mind because the Indian Government is supporting (no danger of immediate recall of loan facilities) and I think they can finish off the project and sell at a reasonable profit after bank payoff. My 5cts worth.

Bye and Merry Christmas!

I think I am going crazy again..

Actually, if I am not mistaken...the estimated RM70m per annum for 26% portion was clean profit estimation is minus off costs (including interest on the projected borrowings at that time)...so the actual estimated revenue from sale of power for the 4 plants should be much much higher...come to think of it.

Better shut up b4 everyone get's irritated with me.

What is Mudajaya's portion of selling price with 26% ownership?

Estimated RM70m per annum for Mudajaya's 26% so India's RKM's portion will be about RM200m p.a. add the both = RM270m per annum x 25 yrs = RM6,750m earning potential estimate a few year's ago...correction. How much to sell now and what is the total cost now.

If someone can purchase the financials of RKM Powergen Pte Ltd India and attach it here...I will analyse it for u guys.

Again I must emphasize charge amounts does not necessarily mean loan amounts

https://www.tofler.in/companyinfo/U40101TN2004PTC054931/r-k-m-powergen-private-limited

If you add up all the charge amounts in the website below (i might just as well be wrong)..the total charge amount for RKM Powergen's borrowings in India is CRORE 8,632 . 1 crore is about USD160,000.00.

Mudajaya's borrowings here are also substantial and separate from that of India...though much of it find's it's way there presumably. So what is the plant worth?...someone said earning power RM150m pa x 25 years = RM3.75billion...25 years long time...so how much to sell the plant?

Just wild thoughts

Mudajaya is now at the mercy of the India government, price and need for power and capability and financial ability to complete the project

The plants will definitely be completed sooner or later. But years of funding and finance costs have gone up..not to mention currency fluctuations. Recorded financial losses are presumably huge at RKM Powergen's India side and can only increase with no firing in sight...my guestimate is Mudajaya's best bet is to sell at a reasonable loss or break even (if ever possible) and run back to Malaysia where it's construction business is booming.

The india government via Power Finance Corp will definitely take over the plant at worse case scenario.

or Hokkien

Too long and they will talk in Hindi

Power Finance Corp India (100% Govt owned) sure can wait longer than banks for plants to generate profits...but are not a charitable entity.

Sorry, typo error...unless Power Finance Corp enforce their charges over the plants

Now we know worst case scenario...Mudajaya if cannot tahan pressure from local banks here and cannot fire plants (no income) or cannot get private buyer of plants...can try and negotiate to sell plants to India government. My 5cts worth. Unless the enforce their charges over their borrowings and give nothing back if their India counterpart defaults in payments.

1 big problem solved...got India government support...now to get the financial health status of the India associate...then all will be clearer

Heartbreakkid pay and get the financials of RKM Powergen la..I think less than RM 100.00. Although March 2016....at least good picture of financial health. Since u invested so much...its peanuts to u. Share with us ok?

If RKM Powergen borrowed from private banks...bungkus by now.

Happy holidays guys...looks like there is light at the end of the tunnel perhaps!!

The good news is that most of the charges on assets are to POWER FINANCE CORPORATION INDIA Wholly owned by the Govt of India.

https://en.wikipedia.org/wiki/Power_Finance_Corporation

The 1st website gives you the recorded charges over assets of RKM Powergen's assets...see below and move cursor from left to right...It will give an insight to total borrowings I believe..although charge amount does not necessarily equals borrowing amounts. Just more info for u guys.

Anybody care to pay for RKM Powergen's latest March 2016 audited financials?

https://www.tofler.in/companyinfo/U40101TN2004PTC054931/r-k-m-powergen-private-limited

https://www.zaubacorp.com/company/R-K-M-POWERGEN-PRIVATE-LIMITED/U40101TN2004PTC054931

Be informed to make the right decision whether to buy, sell or hold. Find out as much as you can

I believe you can also get the quantum of borrowings as well.

Within 2 months from July'15 to Oct'15 the rating dived from BB- to "D". Can't get the latest...can anyone help...jus google ICRA RKM Powergen rating

Ratings revised for the bank loan facilities of RK Powergen Private Limited to [ICRA]BB- and [ICRA]A4; outlook revised to Negative
July, 30 2015 | Rationale

Rating reaffirmed at [ICRA]D for the bank loan facilities of RKM Powergen Private Limited
October, 07 2015 | Rationale

Just remember the 2nd and 3rd plants are yet to be completed though it was reported to so by now...let alone sell power. Time is money...RM5 to 8 billion has been invested there and money is expensive to borrow. Why would Mudajaya ponder the sale of a "Golden Goose" able to generate RM150m as you say...if not for the overbearing and rising costs of the project. Points to ponder..

Can the 74% owner of the joint venture refinance their borrowings in India as easily as Mudajaya? Or are banks and or lenders waiting to throw in the spanner?

ICRA Indai ratings on RKM Powergen Pte Ltd's borrowings will be the ideal way to assess the Power investment in INDIA...believe me ...they are now 1 of the best in financial analysis of corporate's in the world. ratings should be out unless refinanced by other lenders ...so no analysis is required anymore. Last rating was "D" near default if I am not mistaken.

Someone mentioned UOB will not lend unless they know for sure it's ok (project)...well let me tell you they most probably have taken fixed and floating charges/Debenture over assets...there goes Manara Mudajaya and the other valuable prized assets/property if it fails (shareholders get IOU chits as unsecured creditors).Nobody will lend to a company with RM100m losses in 9 months without securing itself. Sometimes they also demand Joint and several guarantee from directors as well...meaning they are personally liable and stand to loose everything except their underwear. But for public listed companies maybe not.

Pay up the MTN and transfer the charge over property to the new lenders. The Hongkees will do the same...maybe 2nd charge or charge over 26% ownership over RKM.

Bankers are not investors like you and me or Fairfax who are investors...they are lenders and grab 1st when everything goes wrong.

Actually, I believe if you know what is the interest expensed per quarter (take off the depreciation part from share of losses from associates for Quarter 6 & 9) you can know what is interest cost per annum for 2 of the plants for Mudajaya...then x 4...u will get interest cost per annum (roughly) for all 4 for Mudajaya...that is only the interest portion...add the principal payment portion...then we can know whether can pay or not from the proceeds of sale of power...or need to sell fast.

Just a wild unprofessional suggestion. Since no transparency by management

I think overall cost RM 5 to 8 billion upon completion..just wild guess...dono wat is Mudajaya's obligation

Anyway I am a loser...so maybe u are rite

I tot power oversupply...can get so much meh?

Sure or not heartbreakkid?

Hey wait a min...if RM150m per annum...maybe no need to sell... can pay off interest and principal for loans

If u are rite...can anyone calculate if a buyer purchases the 4 units...and earns RM150m per annum for 20 years (I believe that's the deal) how much? Rm 3 billion? What is the present accumulated costs for Mudajaya's 26% ? maybe still can sell. pay RM1 billion to get rights to 26% ownership to earn RM3 billion over 20 years...can someone figure out...groggy already...just hypothetical...haha. maybe we can get some idea from this...whether can sell or not

But still not enough to cover interest and principal cost of the Power Plant project...I believe

I think RM 77m is for all 4 plants if not mistaken...if only for 2...very good

1 major correction...what is Mudajaya's share....the above is RKM Powergen's share..I believe

Heartbreakkid ...Can't open the site. If u are referring to Plants 1 & 2 no issue...waiting for PPA's (Power Purchase Agreements to be signed) and then sell...but plants 2 & 3...that's the issue now. 1 & 2 can only give RM35m per annum (projected income).


No offence just for exchange of knowledge sake.

be careful...if buy...buy at intervals...remember it shot to RM1.50 and then fell to 0.85cts in no time...sometime this year.

1 simple question on my mind is...RM 5 to 8 billion project....funds from where and how to pay back...when shooting blanks? Even if u sell power...any buyers at the moment? how much can RKM Powergen earn in total for the sale of power RM269 per annum (about 70m (Mudajaya's 26%) x 4)? Enough to pay interest and principal? how many years have passed by? Any cost for waiting? Any funding by India authorities??? Can someone answer these questions?

RM100m share of losses for Mudajaya's 26% ownership for the 9 month period ended 30SEP16...easy to calculate the joint venture RKM Powergen's total losses for the 9 month period '16...= about RM384m. Total for full year should be about RM430 to RM440m. Next year my estimate is about RM500m to RM700m for full year minus income from sale of power -if any (if no firing on all cylinder's - worse) bearing in mind that 1st quarter this year very low losses, then 2nd Q RM61m..then 3rd Q RM40m. Also 3rd & 4th plant interest should double the losses in simple terms. Yes u can argue "non cash items/depreciation blah blah" but interest cost cannot be ignored.

Still...by no means a easy decision to sell/hold/buy.

The amount is already in the balance sheet as current asset but cash flow will improve

Mudajaya sure to get paid..only quantum to be decided for LRT work done

Another catalyst for a continued price surge is the result of the arbitration between CMC and Mudajaya...with RM175m at stake

Price rising...volume high...Mulpha must be regretting their quick sale...or if they might take the opportunity to sell some more...