ccc company structure, page-4

I think your post enforces Hairy's point about being aware that CCC is a holding company dtr. I mean if all the money shareholders put into CCC has been channelled down to CCL and they can't get back even $2m of it when CCC runs out of cash?

I think his comment on reporting is not too far off either. They don't provide any parent accounts. (I did ask for them once). So investors don't know really what's in the company they actually invest in. That's the problem with consolidated accounting in a situation like this. Other countries require groups to report parent accounts, albeit with a delay. (This is probably not just CCC).

The main thing that shareholders would like to know from parent accounts is the arrangement with BEE in regards to loans, funding of projects and this, paying up cash. Part of this is in a side letter which would probably be referred to in the notes. I have also asked for that but its a secret. Bizarre when you think about it. An agreement between CCC shareholders and the BEE and yet your management wont tell you what's in it. (Again other Australian companies with BEE minorities probably don't disclose this either).

Leaving all that aside. The real problem in this particular case is not Hairy. Its the company who appear not to want to explain an unusual transaction. Or perhaps whoever asked them needed to delve a little further. That is they needed to ask why they didn't transfer the money up.

Anyway I would assume that CCC's cash goes into CCL as loans. Therefore they should have the ability to make make repayments back to CCL on those loans without impacting the bee shareholding. Perhaps bee has required a restriction on upstreaming cash even to repay loans. IF they have it seems a bit of nasty turn to me. I go with my theory that CCC actually ran out of cash as old debt facilities not available for whatever reasons, new facilities subject to conditions, cash restricted and other sums still pending. Shouldn't come as great shock as developing Pen without the barclays cash available yet.

Of course there is a large amount due from BEE2 that will go up to CCC as repayments of loans made to BEE1. Range are basically bridging that so I suppose not much risk for them really. So that cash will repay the short term Range loans and I guess they will keep sufficient cash at CCC to cover various expenses at that level. I assume the vanmag cash will go in to CCL.