With loan book expanding, and NPAT of $6m, you'd expect cash...

With loan book expanding, and NPAT of $6m, you'd expect cash profit to be >$6m (adjust for up-front accounting provisions on the growth).

So it's possible that they could put say $8m cash profit towards debt reduction.

It's a decent dent in $50m. $16m in 1 year, could cut it to $34m.

$16m on $1.2b is not much. 1%+ of it. But not so horrible if it means covenant ratios changing from 99% to <98%, or 96% to <95%. It's a fair improvement in ratios. And it gives time to wait for stronger market conditions. If this is a tough point in the cycle (I'm assuming it is, with so many people complaining about the cost of rent, homelessness, and the cost of groceries), then $6m NPAT doesn't seem too bad. If economic conditions improve, things get easier for MME?

Eg. they increased provisions by 0.5% of loan book as a one-off charge. Say there was a surprise improvement to conditions, it should mean a reduction in provisions of a similar amount?