Yes this is bad. Quoting from the 4D they lodged:The Group’s...

Yes this is bad. Quoting from the 4D they lodged:

The Group’s ability to continue as a going concern is critically dependent on meeting the conditions of the Standstill Agreement and the completion of the recapitalisation process prior to 30 September 2020 or in the event it is not completed, agreeing alternative actions with its lenders. These conditions and the macro-economic challenges from COVID-19 give rise to a material uncertainty that may cast significant doubt over the Group’s ability to continue as a going concern and be able to realise its assets and extinguish its liabilities in the normal course of business and at the stated amounts in the financial statements.

And later:

Hence any potential sustained decline in cash collections [arising from COVID-19] might lead to an impairment of the PDL portfolio. At the date of this report, there is some uncertainty as to whether future cash flows estimated by the Group can be achieved.

The trading suspensions means that they will not be able to complete a capital raising. Credit Corp recently did this with great success. It locks them into reaching an agreement with whatever debt funds are willing to take them on. But why these debt funds would risk it is not clear. The situation probably looked better in February when competitor Pioneer Credit had a buy-out agreement at $1.85. Doug probably reasoned his company, similarly needing to refinance large debt, should be able to get a better deal. Pioneer Credit's deal has since evaporated and it too (as of Thursday) is in a trading halt "pending the release of an announcement regarding the proposed refinancing".

I think it's fair to say there is "material uncertainty" about both companies now. Exactly how this all plays out is anyone's guess but I have already written-down the value of the shares on my records and now I am considering writing them down to 20c or off completely. Worse still, due to the suspension, I won't be able to realise the capital loss.