Solvency is more complex than simple net assets. It's about being able to meet debts as they fall due. The bulk of Norwoods debt is to related parties and Radium. So they just need assurance, and the auditors will have sought written assurance, that those debts will not be chased if it led to Norwood becoming insolvent.
Norwood have been a classic case of a company trading with large and constant negative assets but have been able to pay their debts and not fall into administration.
What is perilous is that if ever those debts are demanded and Norwood can't source replacement debt or run a successful raise then the company will go in to administration. The receivers would look closely at the company, decide if it can trade out of the situation, maybe make deals with the creditors or even sell the company. I still maintain there is a large value to someone in the companies tax losses, it's tech is basically worthless.
NOR Price at posting:
3.2¢ Sentiment: Sell Disclosure: Not Held
