There is no security over Diversa.....that is the issue. If there were, it could have been seized like the other assets. I think that, in the general wash up later, it will transpire that OVH suite knew it needed to not encumber Diversa so that Sargon could use it to secure additional finance. The issue is how OVH did not know it was selling it into a spaghetti bowl of corporate structures where the lien implications were not understood. The market (not ASX.....but the market in which OVH operates) does not expect to see OVH get much more beyond the proceeds of Madisons. Similarly, OVH's auditors would not sign off on anything more than that, hence the $27m write down.
if OVH knew for fact it would get more than what it will get for Madisons, it would be in the HY financials. Otherwise, it would be misleading the market. There are rules that have to be followed. I think the latest financials are an accurate reflection of what will transpire.
OVH Price at posting:
26.0¢ Sentiment: None Disclosure: Not Held
