Turn Around, page-20

Few Pennies I tend to agree with your conclusion that SIV may have overprovided but its a gut-feel. I expected to see massive provisions in FY18 accounts as when a new CFO arrives, like a new CEO, they like to clean the decks. This CFO was armed with a new accounting standard allowing more proactive provisioning. Its all pretty predictable. Saying that, I don't agree with the cash surplus idea. I have been trying to work the debt / rental assets ratios going forward and I am struggling. I suspect they will need all the cash they can generate to pay down syndicated facility debt. On the mezz debt my view is the banks have simply forced SIV to play like a big boy. Its a standard form of finance that any company of size has. TGA is often quoted here. They've had mezz debt for some time now as part of their funding arrangements so I don't see its requirement as an issue at all. The only concern I have is how high is the interest rate and how much will they need. this all adds to the marginal cost of doing business. Someone on this thread mentioned they were expensive. I don't have a view on this other than to say operating leasing is always seen as expensive until the day the lessee asks the lessor to come take the gear away and put new stuff in. SIV has been in the business long enough I suspect they have many repeat customers that have enjoyed this flexibility and see the value in the product. over the xmas period is a terrible time to arrange finance - all law firms in the country go on holidays. I hope they have it well in train by now...

holding with fingers crossed - not a place I find myself in often and not one I'm comfortable with...