fools, page-9

Heron12

Not sure how you can be remotely optimistic about that annoucnement.

I read into it that they have proabably breached their covenants, or are on the verge of doing so and are crapping themselves

That equals some bad things
1) Cap Raising, not so bad as you get to pick up more shares
2) Placement, someone else gets to buy into the company cheaply
3) Increased interst costs.

Likely increased interest costs, decreased work, low margins, restrucutre you read between the lines.

Hope I am wrong and they announce some quick wins, but I am guessing a trading halt or suspension is around the corner regarding discussion with banks reagrding resetting breaches covenants.

Once this short term pain is over, may still present a good opp to get in at low levels.