Katongo @mrr__mutale - Twitter Profile

Where are we at with Vedanta Resources? I have to admit that I have become concerned with this KCM issue. The more I dig around, the more it appears that Vedanta is engaging in a shell game. Why do I say this? Vedanta Ltd is listed in India and owns a number of subsidaries, among them Vedanta Resources. Vedanta Ltd is also part owner in Hindustan Zinc (64.9%) while the Indian govt owns 29.54%. Vedanta Ltd also owns THL Zinc Ventures Ltd which is a company registered in Port Louis, Mauritius. Now pay attention. In January 2023, Hindustan Zinc (64.9% owned by Vedanta Ltd) proposed to buy THL Zinc Ventures (100% owned by Vedanta Ltd) for $2.98 billion in cash, but the Indian govt, which owns 29.54% of Hindustan Zinc, opposed the deal, calling it a "related party transaction" When this failed Vedanta Resources tried to acquire a a $1 billion loan from Farallon Capital Management through THL Zinc Ventures with a guarantee from Vedanta Ltd. Vedanta also pledged 5.56% of Hindustan Zinc Ltd shares. This loan didn't go through. Vedanta Resources ended up getting an $850 million three-year loan from JPMorgan and Oaktree Capital, rather than the $1 billion from Farallon Capital Management. If this isn't a shell game, I don't know what is. In December 2023, S&P Global Ratings reducing Vedanta Resources' credit rating from "CCC" to "CC" meaning likely to to default on its debt obligations. But a few days later, the rating was upgraded to "CCC+" after Vedanta restructured its debts. This means Vedanta Resources faces a high likelihood of financial distress or default if adverse conditions occur. Vedanta Resources had to restructure $2.5-$3 billion which was due in 2023-2024. However, there is $4.5 billion due in 2025. Checkout the Debt-To-Equity ratio chart. A number over 1 is not a good sign. How many here genuinely believe that Vedanta Resources will come up with the $250 million, not to mention the $1 billion needed to recapitalise KCM?