They have NZD 32million in cash and the receivables book will be shrinking in the current quarter as the seasonal peak quarter is paid down by customers. LBY will be CF positive in the current quarter because of this. I don't believe their funding partners would be concerned at this point and if anything would be pushing LBY management more in the direction of bringing in a strategic partner than a long term destructive CR.
The market has gotten ahead of itself on this one, I suspect that the Insto's are selling for two reasons; 1. a CR in the next 12months and 2. being stopped out by their risk departments.
LBY management has a lot of options on the table at the moment. A CR would be the last option that they would pursue as it simply doesn't bring anything additional to the table as we saw from the last CR
The SP is incredibly frustrating that is for sure.
They have NZD 32million in cash and the receivables book will be...
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