buy or sell, page-34

PViews,

No detailed debt maturity profile was provided.

However, u can see that the Scarborough payable of AUD75mln is included in current payables of AUD150mln (i.e. payables due within 1 year from 31 Dec 2008).

Note 16 suggested that current interest bearing liabilities was AUD147.xxmln, and current derivative liabs of AUD37.8mln.

All the remaining interest bearing liabilities (i.e. bank debts or convertible notes) are beyond Dec 31 2009.

(Just FYI, current liabilities means due within 1 year from balance date, non current means due one year or longer after balance date.)

Also, refer page 11, going concern last paragraph, the forecast indicate that they are able to meet debt obligations as they fall due.

It is definite that the banks have verified the forecasts and done sensitivity analysis on interest and debt servicing capacity based on the restructured repayment profile.

Hence, I am not too worried here.

Also, now that the covenants are set at asset level, with no group level covenants, I am not too concerned about the breach of the NAV (i.e. no less than 85% of the last reporting date). It is not that important as long as the assets and businesses are generating enough cash to repay debt. hence, the bank has waived it.

Hence, though the confirmation from IR was technically misleading, it is not too far off. The key LVR and ICR covenants are in compliance.

Scarborough payment:

With the earnings from Jan-Sept 2009 and the surplus cash, and that the some derivative obligations are due in Oct 2010 (refer page 25 re cross currency swaps), and the statement under going concern,plus the intention of Scarborough to defer the payment, it is reasonable to expect that VPG will be able to meet its such obligations.