If a rating agency rate your company as "RD" (restricted default) that means the company is in distress and unable to make due interest payments to its bondholders. Serbadk and Evergrande are recently rated as "RD" and therefore are in distress.
Agree on money laundering. If the income are illegal, this raise even higher concern on the business legitimacy. And if everything is fine, can someone explain why it couldn't service its debt on time? The only explainable guess for me, is the "customer" are something fishy. And since this drama ballooned, they are afraid of their cash inflow being seized / traced when investigation gets more serious and stop paying. Hence the liquidity issue now.
No need to spend so much time analyze if the audit finding is true or not. One just need to answer a question of why they cannot afford to pat merely $7m coupon interest.
@ǷearlꙌhite first wrote about SERBADK about six months ago, on June 8, 2021. Since then, he has written around 1,400 posts, all about SERBADK, and nothing else. Relentless.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3148 views | 3 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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Blacksails
762 posts
Posted by Blacksails > 2021-12-15 10:26 | Report Abuse
Could be money laundering case whereby its customers are good paymasters