Anything that has the potential of being a material impact on the Company (hence its SP) is a notifiable event. Of themselves however, banking covenants (either what they are, compliance with them, or breach of any covenants) are not notifiable events, absent there being anything more. So, unless or if the banking syndicate acts on the breaches, doubtful that the breaches (if currently there are any) will result in a notifiable event arising.
That said, if other triggers occur such as the Jan7 announcement then it may become increasingly necessary then for them to explain how, or in what way, the Jan7 announcement did not involve anything adverse happening. By confirming headroom, they left untouched compliance /conformity to the banking covenants /conditions governing the facilities in place. This however cannot be interpreted as them being in compliance of their obligations, but rather that they commented to one side of the story (the good part) without then addressing the other side (the potentially messy part). Today's mute statement, if anything, makes the situation messier than what it was on Jan7. I would not therefore be surprised if the ASX were to take a closer look at the statement, before then comparing and contrasting it to each of the Dec 17 and 21, and Jan7 statements.
Informed disclosure and compliance does not appear to be a significant priority at the moment. Nor accountability. Investor relations is nowhere to be seen. The Chairman continues to be MIA. No-one from senior management or the Board provided any attributed comment. The drafting of the release was rushed /poorly worded, and the assurances sought were not obtained.
SGH Price at posting:
63.0¢ Sentiment: Hold Disclosure: Not Held
