Ann: Redflow enters Voluntary Administration, page-78

  1. sjl
    1,272 Posts.
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    The devil is very much in the detail here.

    How much money does Redflow owe to creditors? Remember that creditors aren't just money borrowed from the bank. It's also people or businesses who have paid deposits for battery modules; people or businesses who have warranty claims; and suppliers who have invoices outstanding. Will the buyout be enough to cover those debts? If so, then shareholders might see something. If not, shareholders will see nothing.

    There's also the point that having "interest from prospective buyers and investors" is not the same thing as having a deal done and dusted. I could easily imagine somebody saying "I'm interested", looking at the detail of the tech the business has (including the issues that they are still trying to solve) and deciding to not proceed with their inquiries. Due diligence is a thing; it needs to be done (or you end up with the situation Elon Musk was in, where he waived due diligence, tried to back out of the deal, and was essentially forced to buy Twitter against his will), and it takes time.

    In short, whilst this is not a bad thing in and of itself, it's also important to not read more into it than is actually there. There's still a very long road to travel before the business is sold, restructured, or wound up.
 
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