"As at 31 December 2010, Trinity Group and the Trust had deficiencies in working capital of $48.88 million and $25.11 million respectively. The directors believe the going concern assumption to be appropriate for the following reasons:
Trinity Group a) Trinity Group has positive net assets of $43.50 million; b) Trinity Group is in compliance with its Australian banking covenants at 31 December 2010; c) Current liabilities of continuing operations include interest bearing debt totalling $91.25 million which was due to expire on 31 October 2011. Subsequent to balance date, NAB have advised that their total facilities with Trinity Group of $72.98 million have been extended until 30 April 2012; d) The balance of the interest bearing debt disclosed in current liabilities is a limited recourse facility from another financier secured by a second mortgage over the property to which it relates. The value of the security of $4.8 million is less than the senior debt of NAB (secured by first mortgage) of $11.66 million; and e) Trinity Group?s 12 month cash flow forecast shows positive operating cash flows. After taking into account item (c) above, Trinity Group has positive working capital of $24.10 million as the NAB debt is now not due"
( REF: Trinity Half Yearly Results2011)
Total debt is 91.25M NAB debt is 72.98M
Leaving a limited recourse facility from another financier of 18.27M by an unknown lender with a second mortgage over an asset worth only 4.8M ??
NAB has the 1st mortgage of 11.66M over the same asset (Leaving NAB 6.86M short) ??
If this is the case no wonder NAB are so helpful with funding thats a $6.86M gun to their heads in default/sale, wonder who the idiots are that lent the second mortgage ??
(Note San Remo site, San Remo VIC Residential is valued at 4.80M was failed joint venture with O'Rorke's Consolidated Properties see: http://www.smh.com.au/business/ikon-is-developers-icon-in-victoria-20110510-1eh4y.htm)
TCQ Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
