"I would have thought the waiver was essential for the financial statements to be presented on a going concern basis"
I don't agree with that statement. A waiver is only a temporary reprieve that can't be used to show they have sufficient funds as at balance date. The company has the obligation to pay the money, so therefore will need to be accounted for in the financial statements as a liability.
The reason for the deferral of payment is all to do with cashflow - they simply don't have sufficient funds to meet a repayment obligation so have asked for that payment to be deferred. It will still be accruing interest (most likely penalty interest costs as well) and may likely be rolled up as principal in the next debt facility (hoping they actually can negotiate a new loan facility agreement).
I'd be very careful making statements that they are taking such actions as a way of showing they are a going concern - either they are or they are not and the Directors & officers need to ensure the company is operating accordingly.
AJM Price at posting:
7.0¢ Sentiment: None Disclosure: Not Held
