Just to elaborate on the going concern statements by auditors, generating cash, even a reasonable amount does not automatically mean you will pass a going concern test.
As a Hypothetical, XYZ Ltd. at 30 June 15 has $100 mill in the bank, mDe a PAT of $60 mill and had positive cash flow for Q4 of $40 mill and $90 mill for the full year.
But, they had a $900 mill loan that had terms it had to be repaid on the 10 Dec 2015. Unless, the loan terms had been renogiated or refinanced by the date the auditors sign off then they would get a going concern statement.
And forgot to add in someone posted that MBN did a debt to equity swap. Yes and the debt was swapped for shares that gave the note holders 95% of the company and had to be approved by the court. So a takeover that basically diluted existing shareholders out of existence. bit of buying on market to get to 97% then compulsory acquisition of the remainder of the shares.
Lynas warns - uncertain of survival, page-36
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