Ann: Debt Update , page-21

The Head trust loan is their big worry. Most loans are limited recourse against the assets they secure. The Head trust loan is full recourse over all assets. It has been in default on a covenant breach since July last year and as that covenant is based on a gearing ratio it can't be corrected.

So their fate is in the hands of this Head trust lender who won't be extending past the 26th. That implies refinance or administration. If administration, then good-bye to everything.

But can you see MQG letting it go? It would be a big call as it's major reputational damage for the parent. Recall they threw money at Brisconnections to keep it going during the mess of a year ago and that was to avoid reputational damage.

When companies are in a state of flux and uncertainty it can be a great buying opportunity. Not sure if this is one of those though. It's been in self-administration since the GFC. A very risky share. It's likely to drift down in the absence of any news as 2th gets closer IMO.

(former holder)