"In the Financial Review page 47 ..26/2Valad Mananing Director...

"In the Financial Review page 47 ..26/2
Valad Mananing Director Peter Hurely told investors there had been no changes since the group updated the market last month. The group is expected to report Friday. Australian financial review revealed last week that the strategic advisory arm of insolvency firm KordaMenta was working with Valad to negotiate with key lenders and UK-Based director Kevin McCabe on a recapitalisation.

Accountants from KordaMenta¡¯s 333 capital arm were called in by a lender, believed to be Commonwealth Bank of Australia. Valad has said it was talking with its leading banks about its $1.2billion debts.

The group¡¯s liquidity position is strong, and it has raised substantial equity for it wholesale funds, indicating it retains the confidence of these investors.

The valad funds are yet to deploy much capital as the group waits for property markets to botto an analyst said that Valad faced problems that were common to property funds-management groups with complex structures.

In Valad¡¯s case, he cited the issue of falling asset values; the faltering business of the group¡¯s Valad Capital Services, and its exposure to the UK Europe."

It reads positive to me.

liquidity is strong, fund management business ready to go, plus they confirmed that covenants are in compliance.
VCS is a concern.

Recapitalisation likely, but at what price?

Are they pushed by banks to do so?