Ann: Directors appoint Voluntary Administrator-HDX.AX, page-3

Thanks.

Guess I was wrong about this company.

Still wonder how they have managed to screw this up. I guess the 10 million in debt taken on for the new rig model didn't help and the 5 million for the Compressors.. All debt they could have done without, and would have made a real difference I guess in the current situation.

They had 12,5 million in EBITDA last half year and net debt of 54 or so million.
That was before the real startup of Blackwater.

And all other competitors managed to maintain and even increase margins (Look at Ausdrill, Action D&B, even Mitchell Services which has a way worse balance sheet...).

Heck, East coast alone should be able to do EBITDA of 18-20 million (when you take 30% margins, lower than they guided in the past), enough to cover the debt.

So where did they screw up.

And by the announcements made, it looks like the situation has deteriorated even more (in the first announcements, they still talk about growth plans, and now they only talk about a recapitalization).

Pity really, and then to say I didn't invest in Ausdrill at 30 or so cents because I thought it was too leveraged..

I just hope it doens't get taken over on the cheap by a competitor/insider or gets diluted like hell.