Ann: Update of put option and loan repayment recovery, page-171

you keep trying to suggest that QIN was in a worse position in 2012 when CBA pulled the plug, but this is wrong on very many levels.

Firstly, it was 2011 when CBA pulled the plug. As at 31 Dec 2010, there was $54m owing on that facility, and QIN had $7m in cash. They solved this by issuing ~$38m in new equity, establishment fees and eventually with a USD150m issue of 11% notes with warrants.

Today, QIN owe $315m in secured notes alone, plus the put liability of $34m or so, plus the full recourse loan book they've sold ($11m from Frank!) that they'll have to make good on, plus who knows what else. They had $17m at the end of May, they've sold $8m of product in a firesale, and clearly they've had no material plantation sales and money is still flowing out, and the senior bondholders are now running the show. They've got an interest payment due in a week, and it would appear no means of paying it.

Today is a whole order of magnitude worse for QIN than the minor inconvenience of CBA running for the hills. Clever old them....