A repayment on the debt is due in June 2017 when amortisation commences. Whilst the amortisation schedule (amounts) were not disclosed, the commencement of repayments was made abundantly clear. That now seems near impossible unless their projections for stronger H2 FY17 revenue come to fruition, however they still need to generate a profit on those numbers. Revenue in and of itself won't repay the debt.
So if they are still cash flow negative, require working capital lines to keep the lights on, and have otherwise maxed out their LT debt facilities, where do you propose they'll find the cash to make a partial repayment?
SGH Price at posting:
17.5¢ Sentiment: Sell Disclosure: Not Held
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