details on why i'm negative on ppx, page-26

CmonCDR

Agree with everything you say, and believe it is actually worse.

Debtors: PPX secures its principal bank credit (the one mentioned in the ASX Release on 13 May 2011) with the insured debtors of one Dutch & 2 UK subsidiaries. So no bad debts but only 25-30% left for PPX. The facility is with ING and rated AAA by S&P.

Stock: An abysmal outcome. Thousands of items in many, many locations (Robert Horne has 19 distribution centres alone).

Nowhere have I ever suggested liquidation as I know full well the outcomes of that path; been there and done that many times directly in a former life.

My Position: In difficult times like these it’s beholden upon the Board of the besieged to carefully manage all stakeholders. Negotiation and compromise is called for. Corporate bastardry and deceit (more to follow soon at you know where) under these circumstances is the sure sign of either arrogance or stupidity.

Just think - one lousy distribution and I’d be contentedly accepting of all of PPX problems, but denied the benefit of these exchanges.