up 35pc on financing announcemnt, page-8

Not4profit , please dont take offence but all three of your post made no sence at all.

Firstly and foremost, the company was 54% geared (meaning there are more liabilities than assets), this is before macqurie bank financed them. If the company goes bust Macquarie Bank will get didly squat. Mac bank is only an investor and the bank who has lent money to CFK will be first in line should the company be wound up . .

Just because they invest more money doesnt automatically make them prefrence shareholders and first rights to the assets.

Secondly, yes there is a Childcare shortage and it is not a matter of parents wanting the best for the children. In many cases its a matter of which centre you can get into. The problem with this company is not the buisness model or industry it is past management and its decisiosn. The company has not been running profitabilitly yet it has already entered into agreements to purchase more and more centres, each time diluting the company. Now the company may be trying to create some sort of ecomomies of scale and expand as large as possible to become profitabil but its clearly not working and they are stupid for thinking that this will work given the debt structure of this company and the fact there is little room for error. Now the company is treading a very thin line and all because they company has tried to load itself with debt based on a buisness model that isnt profittable .