Receipts for the quarter were down significantly and unexpectedly to $638,000.
AVD originally announced that they had a US$20 million dollar loan facility. It now appears to be US$7.4 million and they have drawn down $6,140,000.
The operations manager has now changed. The previous operator was granted a large number of options to secure there services. They obviously were non performers. Lets hope the new operator performs.
A large number of convertible notes are due at the end of June this year at an issue price of 80 cents. I can bet they won't be converted. It will be interesting to see what they do about that. In this current credit crisis I would expect more asset sales to cover there future debt payments. At present they are substantially cash flow negative. $638,000 in cash receipts a quarter ain't gonna do it !
This company has been a huge disappointment. I can't see them lasting too much longer.
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