Ann: FY2015 Results Presentation, page-15

This is my understanding too. In which case my interpretation is that their true "debt" is more like the $38.8m unsecured corporate bond, with the other current facility being more like a short-term overdraft facility on their day-to-day account, which allows for timing differences in cash-out and cash-in. (This is what I meant by my clumsily worded reply that the $90m overdraft would be covered in about a month, as that is the rate at which cash enters the business. I agree that this does not mean that the facility would be suddenly paid off, as there are of course other expenses in running the business).

But I think in a liquidation situation, the trade receivables value of $164m would comfortably cover the receivables facility of $120m (currently drawn down to $90m).

So if you broadly agree with this, do you now think that the level of "true" debt is too high at $39m? This is a genuine question, I'm not trying to be smart. But personally this seems Ok to me although I would like to see a "plan" for it to be gradually reduced, either by the directors actually using the DRP (which they haven't been doing recently), or another equity placement. Failing that the dividend could be reduced, but I like the fact that this stock is paying near 10% fully franked at the moment.....