all over red rover, page-46

Markie,

You said, "Assuming that the projects for the last few years are worth zero, and land sells at 50% to 75% of value on the books, and the timber mill sells for 50 to 75% of the BV - and add in say $20m for admin costs, and a few other reductions. Overall I find a val of about 5 to 20 cents per share liquidation value, depending on how pessimistic you are about asset values."

A big problem of MIS is that the value of the projects is not zero but negative. All the MIS projects need a maintenance (including overhead) fee of $200-300/ha/annum (plus rent if the land is rented), so if assuming FEA has 100,000 ha(?) lands for MIS, it need $20-30m/annum for 5 years on average (5-year is the assumed average remaining years of the plantation rotation, half of the rotation period). Thus the "real value" (or say real liability more exactly) of these projects is a negative $20-30m/annum * 5 years = -$100-150m. If this liability is added to the balance sheet, then the net assets may disappear.

I reckon this liability is always deliberately hidden away from all MIS balance sheets including those of GTP/TIM/FEA/Rewards/WFL/GNS/ITC/etc with no exception. This is why they are called PONZI or POISON PILL ... This is why GTP/TIM both had a NAB of 30c or 50c per share just before collapse, but it suddenly became negative after collapse.