"Seems pretty extreme to suspend trading and cancel distribution given the positive tone of the results / distribution announcement in June"
Funnily, I interpreted the commentary made in June a lot less positively.
Reading that announcement, to me the new fund investment objectives as well as any distributions were highly contingent on a pretty meaningful chunk of capital liberation from fund realisations (the target they had set at the time of the half-year result was around $55m, which is a big number in the context of the asset base and company size.)
So this always going to be a tough ask in an environment far more conducive to purchasers, as opposed to vendors, of the assets ENN was hoping to realise.
So that they had accomplished only one-quarter ($15m, I recall) of their capital release objective at that late stage of the financial period was a worry. I actually thought they might undertake a capital raise to be able to bridge the gap.
But when they did declare the final distribution in June despite this made me think I had been too hasty with my concerns, and that they had managed to ink in some deals that merely needed to undergo agency finalisation.
I expect they did (or else why did the Board commit to a $4m commitment to unitholders?), but something must have gone awry after the 30 June 2024 balance date.
At any rate, as always the devil is in the detail, and there's clearly more of a short-term liquidity issue than a solvency issue, so I'm curious to see what transpires now and how they manage to navigate around things.
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