some support from .035, page-15

Landrat,

Would you like to share with us the reasons for Valad going into administration? I'm not talking about some outlandish statement about you knowing a guy, I'm talking some specifics. What is the reason?

- There is no debt to be refinanced so that can't be it,
- Covenants shouldn't be a problem as the equity portion of the recent sales could be applied to any problem loans (they could have paid off 10% of net balance sheet debt with recent the recent sales, not to mention the $160M received this year for prior year sales).
- Interest cover remains very high,
- I count 9 separate change of director interest notices between October and now, all for buys (Is it the receptionist who is talking to the administrators and she forgot to tell the directors?),
- All of the funds that Valad manages are still there and paying their management fees,
- Lower interest rates will have increased Valads net cash flows as not 100% of the debt is hedged,
- Valad took the hard line at June 08 with write downs which only took their gearing to 40%,
- Valad had a healthy working capital at last update, could you please explain to us where it all went? Or even if you could give me some examples of some other companies with healthy working capital balances, substantial equity and no refinancing problems going into administration it would help with my research.

Anyway, please feel free to set your money alight, I would prefer to invest mine in undervalued tangible assets and reap the rewards in the long run.