finance , page-31

Hi mad max

I'm not one to stick up for management, but in this case I think "things" might be evolving behind closed doors, causing management to review & change their financing requirements, hence the delays.

With the ongoing GS sale, all sorts of scenarios could have popped up changing the landscape. For example, the sale could have looked simple with say only 3 bidders, then along comes a 4th needing more time for board approval (as someone posted after speaking to PC) thus forcing Marion to look at different finance due dates, amounts etc. Such a scenario may have pushed the offer date past June 30, causing a flurry to finance the options - possibly tied in with the company finance, especially as this will give Marion over $6m. I'm not saying this is what's happened, but with the sale in progress, options expiring in 3 weeks, debt needing rolling over etc etc....things could get very complicated, with many changes of direction.

They have already stated they were looking at finance from a 3rd financier, if this worked out, they then have to tie this in with the Fortis rollover. Once approved, many legal documents would need to be signed, such as the 2nd mortgage/lean over their assets etc - this takes time, especially as this is an Australian company with US assets as security. My best guess is that this is where they are at, they hoped to have it all finalised by the 8th, but time beat them, hence todays interim statement.

With a bit of luck, the directors will stuff up the timing of their options and we wont get the dilution. Somehow I don't think that'll happen though.