They have currently provisioned for $3.8m with restricted cash set aside of $3.9m. IF you interpretation of the judgement is accurate they may then be required to stump up more cash. The ATO judgement is yet to be delivered so that cash is not available. The funding would have to come from: i) loan funded by a Director, if they have any fire power left. ii) a placement to a friendly group - FS springs to mind but they are already in a massive hole here and might have also reached their limit iii) a rights issue to be launched asap - how much will the Directors be able to contribute given their previous funding efforts and substantial shareholdings is the critical question in this circumstance iv) another convertible note
they might get some forebearace in time from the Govt to pay a large bond but who knows Voluntary Administration looms large here
MRV Price at posting:
0.2¢ Sentiment: None Disclosure: Not Held
