Ann: CLH - Outcome of Recapitalisation Process, page-6

On the plus side, at least I see some of the upside on the CCP side......unfortunately I expect the CLH hit to be more than offset the CCP upside I'm seeing today.

So many things just don't make sense:
- selling PDL book because they don't want to take further adjustments to the value of the PDL asset......yet they retain the same people and getting funding capacity to go right back into PDL purchasing
- the PDL business was the big cash cow, but they have only signalled a "partially reduced cost base"....how can they maintain anywhere close to the people they have when the bulk of their revenues are gone
- they have 15m from CCP, and a further 45m facility with no real assets and a collection business that generated ~4m in EBITDA in FY2020 (and this is down from 9m in 2019)........how is this sustainable

On the other hand, CCP are reporting that although the agreement is for 160m, the value at 31Dec when the number will be agreed is closer to ~150m which they say has ongoing payment arrangements for ~200m....this transaction alone has led them to increase NPAT guidance by 10m (this is for a 6 mth period)!

No mgmt changes, no shareholder vote......this board & mgmt are totally unaccountable for the shareholder value loss. I guess this is an expensive lesson in not only focusing on the numbers, but paying attention to the quality of mgmt and how their interest are aligned....and this mgmt have virtually no ownership in the company (I have more shares than the chairman!!). Certainly not the case in CCP.