Ann: Market update deleveraging plan, bank covenants, guidance, page-87

Elsewhere I have posted a Joint Venture scenario between Bright and Synlait. A buy out.

Because I just can't get my head around an equity raise.

I reckon your $60m is way too light - but is a useful reference point.

Bright have said their $130m is to restore short term liquidity. Lets put aside this debt-for-debt deal for a moment.

In November Synlait needs to find $180m. Where is this going to come from. Its not going to come from cash. And given banks want their $130m back its not going to come from banks.

So run your numbers with a $180m cap raise. Or lets round it nicely to $200m

And it can't be at NZ$0.28 or Au$0.255 because thats what the shares are currently trading at. So chuck in say, a 10% discount.

No matter how this is cut and sliced I don't see how it can work.