A legal battle is brewing over the financial information provided to Parliament last week about payment made to attorneys by the Ministry of the Attorney General for legal and other technical/profe
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When will the TCL saga end?
In TCL’s consolidated interim financial report for the three months ended March 31, 2014, the Claxton Bay-based company declared that its operating profit was $68 million and that its finance costs amounted to $50.7 million.
In the notes to those financials, under the rubric “Going Concern,” shareholders of the cement producer were told that debt service for the TCL Group (inclusive of principal and interest) is forecast to be $368 million for 2014, which is about 24 per cent higher than the debt service in 2013 when the group was required to pay $298 million in principal and interest.
Now, if TCL is required to pay principal and interest of $368 million for all of 2014 on its $2 billion in outstanding debt obligations to its creditors, it stands to reason that the company is required to find $92 million a quarter (or $30.6 million a month) in order to service its debt.
The TCL shareholders who purchased 597,044 shares of the company in the last eight trading days should take note that the company reported operating profit (restated) of $271.6 million in 2013—which in terms of revenue and operating profit was the company’s best year since 2008.