We ask the questions that need to be asked, Hong Bao Media Holdings Pte Ltd

Mark Laudi • Investor Central

We ask the questions that need to be asked

Hong Bao Media Holdings Pte Ltd

The centrepiece of any conversation about Del Monte would be its huge debt. By buying over its namesake in the United States in 2014 and taking on a lot of debt in the process, Del Monte is playing a high stakes game. And with each passing quarter its investors and lenders are waiting to see whether it can pull it off.Del Monte's net debt increased to US$2 bln as of the end of October 2015, and it has been paying about US$22 mln-US$24 mln per quarter this year in interest.The company needs to integrate the new US business and start generating steady cash and profit to pay off its debts. But in the meantime it is still borrowing money and selling rights and shares on the two exchanges it is listed in.How will it reduce its interest expense?

The centrepiece of any conversation about Del Monte would be its huge debt. By buying over its namesake in the United States in 2014 and taking on a lot of debt in the process, Del Monte is playing a high stakes game. And with each passing quarter its investors and lenders are waiting to see whether it can pull it off.Del Monte's net debt increased to US$2 bln as of the end of October 2015, and it has been paying about US$22 mln-US$24 mln per quarter this year in interest.The company needs to integrate the new US business and start generating steady cash and profit to pay off its debts. But in the meantime it is still borrowing money and selling rights and shares on the two exchanges it is listed in.How will it reduce its interest expense?

Del Monte Pacific Limited: Can It Bear the Weight of Interest Costs?