Question-and-Answer Session
Operator
(Operator instructions) And your first question comes from the line of Shneur Gershuni with UBS. Please proceed.
Shneur Gershuni – UBS
Hi, good morning guys.
Ben Hatfield
Good morning.
Shneur Gershuni – UBS
I guess a couple of quick questions. You sort of talked about the covenant issues this morning, just to clarify you communicated with the bank group that you haven't actually gotten a waiver at this point right now?
Ben Hatfield
That is correct. We have a draft amendment which will be – actually it will be circulated today. We have had presentations with the bank, but it has not been officially approved as of yet.
Shneur Gershuni – UBS
Okay, but I mean – there is a general understanding and so forth or you are not even at that stage yet?
Brad Harris
Looking at the terms, they have all been presented to the banks. That is correct.
Shneur Gershuni – UBS
Okay. A second question I had is you are looking at shutting down the – your closing in Sago and so forth, in terms of the cash – related to actually shutting it down and so forth, is that part of your CapEx assumptions or is that going to run through the income statement on the cost side on your general collaborations cost?
Ben Hatfield
There's not a whole lot of costs related to that in the reserve fully included the remaining cost to extract the remaining equipment and things that were in the mines that has fully been provided for in the income statement already.
Shneur Gershuni – UBS
But what I'm saying is that is part of the – that is kind of run through on the cost side. It is not going to – there is nothing on. The $100 million for CapEx is not related at all to Sago then?
Ben Hatfield
Does not include anything related to Sago. That is correct.
Brad Harris
There is really no connection there. It is actually part of our reclamation liability, which essentially is mine closure cost we have in accrual for us. Essentially wrap up of depleted coal mines. So that has already been booked, if you will, and doesn't impact our CapEx.
Shneur Gershuni – UBS
Okay, perfect. In the past you have talked about, I believe it was at the Vindex operations, about negotiating for rail load out and so forth to help bring down some costs there and what not. Has there been any development with respect to that?
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