Australia's largest stock trading and investment forum Australia's #1 stock forum

NWT

Click for more information

0.00%

11.5¢ newsat limited

Jab 1, page-9

First 9 Last

Share
Profile

Follow
bushboy

146 Posts.

28/01/15

12:19

Post #: 14651742
Share

Originally posted by demerger ↑

It is project financed so the project is owned by the banks, not the company. If you read previous press releases, the banks must approve any form of equity injection before it can proceed. The company said two months ago that it had put a proposal for $30m to the banks. Presumably this was not approved by the banks? Now they are talking about $60m in proposals they have, but they have always talked about how everyone is lining up to invest in this company. What happened to the $30m? Was it real?

The sad truth is that it is sinking and I can't see why anyone would invest in this company. The other thing to consider is that the banks might have just had enough and by not agreeing to any equity injection, they will just expedite the removal of the project from NewSat. So I suspect it is the banks that are working with Lockheed Martin to continue with construction, so that they will have a saleable asset to be disposed of that can still be launched in 2016. This will maximise its sale value.

Additionally, now that the company is in default with Lockheed Martin, it will presumably be in default in respect of its financing arrangement? The banks can insist on immediate repayment and it may well be that any equity injection will go straight to the banks. This company has a history of b*llshit announcements and not providing all relevant facts. I wouldn't be assuming the three parties are all working together on this.

According to the June accounts, the banks are owed $187 million. It sits on the books at $390m, but this will be gold plated and include all the largesse spent by management on things such as payments to Cresta and trips around the world that would have been capitalised against the project. I expect that a proportion of salaries and bonuses paid to management and normal company expenses would have been capitalised, so what is Jab1 worth in a fire sale?

This is a disgraceful situation that is completely the fault of management. They have not been unlucky due to some unforeseen economic event. The banks stopped funding the company due to the behaviour of the individuals in the company. You can read it in the company's own releases - they reference the insistence by the banks to improve their governance. You can only imagine what the banks believe has gone on there. NewSat had all the funding it needed, yet it has blown it.

It is beyond belief that the board still has any semblance of confidence in Ballintine to retain him. This just proves that Green and Ching are nothing but his cronies. They have also ignored their fiduciary duties in not sorting out what the banks told them to sort out and hopefully will face charges, but of course that will never happen. I expect we know now why the independent directors resigned. With the other cronies, Ellison and Abbott, also on the board at that time, the company was controlled by Ballintine and his mates.

A disgrace.

Expand

Karma is coming..... have heard on grapevine Ballintine is on ASIC and Federal Police radar which is gold as he actually told me one day he is a sleeper for ASIO!!! Just another Bullshitime fantasy!!!!

NWT Price at posting: 9.6¢ Sentiment: None Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

IRX

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

EEG

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

GDM

Banshee's historic trenches prove rich in antimony and gold for GDM

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

CLE

Cyclone signs MOU with Vale for development of Iron Bear play

CUF

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

HotCopper Highlights: Your most watched stocks for Week 46, 2024

First 9 Last

Add NWT (ASX) to my watchlist

SPONSORED BY