short selling reforms too late for mfs and ocv, page-31

Lehman Bros..Bearn Steins...Merrills

Centro owns billions in assets..
In case you didnt notice many companies have had their SP crucified and lenders given the green light to call in funds..NOW
If you cant sell assets the large financiers who are fighting for their own survival will demand repayment..NOW.

Fortunately MFS had a few stable creditors ie NAB who waited for payments.ANZ financed GPM.

MFS was dismantled ..if you noticed..and that saved the satellites..but ended most profits..
ENDED PROFITS..

This is more than a credit squeeze...SP destruction allows it to be a credit retraction...all bets off..try running large businesses with no debt..thats why it is such a drastic global situation...good companies are being forced to repay debt with the added momentum when their SP drops over the shorters cliff. Then throw in Directors ,and many Australian companies find themselves with directors holding Margin loans which weaken the shares foundations.

Calculated safety nets all in place for lenders and even directors when a crash happens..
Shareholders are left watching the dismantling of profitable satellites and the sale of profitable assets all to meet the lenders demands as they sqeeze every last drop of liquidity out of many companies.

Why would ANZ extend credit to GPM if it did not promise returns and was considered profitable?

I agree MFS model is not suited to these times but dislodged parts will survive, adapt and do well..
I can see individuals blamed for a universal practice that has been used to protect the creditors no matter what happens in the market place or how profitable the Company.

Never mind Ike...lots are losing lots ...w are not the only ones but try to consider that all those losses are not due to mismanagement...the business world just got ugly
even the biggest oldest banks are no longer profitable..

We will be wiser next time...you might blame different things than I do, but lets hope we can conserve as much as possible in real bad times..

Conserving excellent assets and some, even if not all ,business identitys abilities in this country would also be a plus.imho.