Pointless whinging...., page-25

when any directors signs off the accounts, of any company, they must warrant that the company has the ability "to pays its debts as and when they fall due".
they cannot enter into any liabilities when they have an expectation that the company cannot repay that debt.
if they do, then that coy is trading whilst insolvent, and the directors (and mgt) can be held to be liable.
the period for that "warranty" (cannot think of correct wording) is at least the next 12 mths.
so that is why the EGO auditors are focussed on the repayment of the ERM loan.
we can presume that the auditors are comfortable with the ability of EGO to repay the loan (by way of refinance or sale) simply because the EGO accounts were not qualified. That "get-out" clause is reasonably standard, to cover a potential issue were EGO not able to refinance.
The matter of whether the purchase of the ERM J/V interests was a good deal or not, is a separate issue.
So is the consolidation. IMHO, that is the most glaring example of poor judgement by EGO.