for mitta, page-15

Homey,

It is certainly possible that administrators won't be appointed. The reason for my comment was that Australian insolvency laws are very strict on directors. Directors will therefore be very aware of the risk that if the company collapses at the first covenent, the liquidator / regulators may argue that the company could have been trading insolvent much earlier. They could run the argument that it was insolvent because it was almost impossible that they would have met the covenent based on the information now available.

The press whinge about director salaries but there is a lot of exposure for them that I would be concerned to have?

I don't have a crystal ball and hope my prediction is wrong. I do believe there is a real risk that directors will appoint administrators within 3 months if things don't improve. We have however seen a lot of tunnels like this go into liquidation i.e. Cross City Tunnel Sydney, problems with Lane Cove etc

Best of luck guys as being on a sinking ship is never pleasant. We have all been there though.

I am the Iceman!