This doesn't necessary mean the company is going under. With cash flow tight while they arrange finance it is often prudent for directors to protect themselves from personal liability by voluntarily appointing an administrator. The company may well function as previously planned and once they secure the finance, return to normal.
Obviously the issue is whether they can achieve finance. The current macro climate isn't helping but with the way management has turned the operations around and secondly that most shareholders being former and current Note holders, I have to say I like their chances of getting a successful outcome.
MBN Price at posting:
8.3¢ Sentiment: Hold Disclosure: Held
