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That all be fine however since TP did suggest a timeline and did...

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happy Hippy

5,651 Posts.

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24/03/15

20:04

Post #: 14972400
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Originally posted by PGFin ↑

HH, are you are assuming that the delay is AVB's? The lead bank of the syndicate is responsible for producing the information memorandum and marketing to prospective banks to invite participation in the syndicate. Those banks will do d/d, make determinations on how they will participate and legal teams involved in all directions. Therefore, the lead bank drives the process - not the applicant (AVB). With a number of different parties involved it has the potential to become complex. Complexity = Murphys Law = longer than expected.

TP's expected timeline - I believe that TP has attempted to illustrate a timeline on when he expects finance may become unconditional. The danger in documenting this "expected" time frame is that shareholders hold TP accountable to it. I think its is unfair of anyone to blame TP, as its holding him accountable to an event that is (most likely) outside of his control. In future, perhaps TP will avoid providing time frames altogether if the "average" shareholder is incapable of digesting the information correctly. Perhaps in future, such information might be "we have applied for funding from a range of financiers" - with no time frame provided. I could not blame him if he did.

Take a look at the top 20 shareholder list, notice very little change (by the top 20 who own half of the company)? These companies/people have clearly conducted serious D/D to take large positions in AVB. I am sure that each one understands that the time frame TP provided is simply a guideline. They understand the nature of the finance being sort and they also understand the credit worthiness of the project on offer. Sure we all want finance approval yesterday but we will get it when we get it.

IMO nobody will be happier than TP and the board when finance is locked in. So asking him to hurry up with "Tick, tick, tick" etc. is a little out of line IMO considering its the bank we are waiting on.

By the way, demanding banks get a hurry on doesn't work either. Banks like do everything in their own sweet time unfortunately.

(All the above is IMO - DYOR).

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That all be fine however since TP did suggest a timeline and did tell us that 'interrogation of the term sheets was concluded" then don't you think TP may be wise to inform why it looks like taking longer...no matter how prosaic?
It does not build confidence and as I lay in bed pondering this and other pressing matters like what to have for dinner I'll toss this spanner in the works...
I reckon as it is taking so long that we have a problem. We may get finance but on what terms.
There...see what happens when you create an information void

AVB Price at posting: 7.2¢ Sentiment: Hold Disclosure: Held
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