Ouch, page-36

Think what people don't quite understand is that asset (1.161bn) includes a provision of ~75m.

The business will suffer some credit losses, but this provision is generally a conservative one, and even where they can't collect anything, they pass this on to a collection agency that will either pay upfront (I've heard ~20c in the $1) and try to make money on that basis, or act as collectors for MME (so MME still owns the loan, but just outsource chasing on the more problematic debtors).

PEP should understand all of this, and also understand they are now are locked into the success of the business as the owners (if we are saying warehouse facility providers are the 1st creditors, then a winding up will result in someone paying much less for these loan balances and PEP are unlikely to get anything).

Not a great situation to be in, but if PEP have confidence in mgmt and the business, then it seems they might give some room for them to trade out of this (to some extent) self inflicted capital squeeze.