goodaye P/plus, my view of the announcement is that the w/downs were expected by both LLP and the banks. i guess the important thing is that the w/downs are non-cash flow. The covenant breach is really related to balance sheet covenant issues, rather than cashflow issues. I think the banks will waive the breach, particularly if the outlook for LLP is improving. Otherwise we can expect LLC to provide some loan funds in order to rectify covenant breach, or an issue. LLC could lend money via a C/Note issue.
I reckon LLP will do something to sort out PTN soon - they both keep flagging that the current arrangements are not working.
Whilst i would also love to get 30c p/s, it won't happen for a long time. I am betting LLP will buy PTN assets, and pay for it by way of a rights issue - such rights issue underwritten by LLC.
cheers
LLP Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
