On the negative side there's the common theme of poor communication. On the other side there are the typical excuses for poor communication. These excuses are based around what some believe to be the slow Brazilian way of doing business.
Now if this is true and well known then our management should be fully aware of this and they should not be able to use this as an excuse for missing promised delivery dates.
IMO, blaming third parties for delays to promised milestones when any delay should have been accounted for is a good indication of poor management.
For anyone to suggest that the current delay in finance approval is predominantly due to the banks is quite frankly burying their heads in the sand.
The loan terms were agreed to some 2 years ago. The loan terms were based on deliverables from AVB, NOT the banks.
For the last two years we have seen AVB doing exactly that i.e. obtaining a $12 million security from BlackRock, FML and JORC 2012. However there are other conditions to be met by AVB, NOT the banks.
Have all these conditions been met by AVB? The answer is a big NO because we don't have the finance yet.
Unfortunately I fear that the Q4 Report will be full of "best case" scenarios once again. One saving grace is that a Q4 2014 construction start date can't be used any more.
AVB Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
