I just don't understand why they need to have such high debt...

I just don't understand why they need to have such high debt levels.. by way of their constitution they are able to pay out 100% of their debt as dividends...

but they aren't generating any cash, and going further into debt.

Profit for the Half was $4m
Cash outflow for the half was $13m
Increase in debt was $15m
Payment of Dividends to shareholders $2.5m

8.5% of the Profit is paid to directors on a monthly basis... while cash flow is still negative.

I can't see this ending well... Can anyone explain how this company won't end up bankrupt?

Am I missing the obvious?