It’s very easy for NWH. Stop all operations today. It will kill any hopes of a sale and cost the government millions, if they can ever get the operation up and going again. The only profitable part of the business, is the mining and making of the iron ore product. The steelworks was believed to be the loss making part of the business.
The fallout of this action, will be 355 people will be out of work today. Might as well shut down Whyalla. Sure it may cost a bit to remove equipment, but we can’t have governments retrospectively passing legislation and effectively stealing assets.
As others have said, it would be interesting to test this retrospective legislation in the federal court. If the government thought this would work, they would have passed the legislation. Is it just a tactic by the administrators to get NWH to give up on the debt?
Any action in the federal court should name the leaders of the Labour Party in any action, along with the people who are recommending the legislation. Its easy to stand behind the front line in battle, its a lot more difficult when your standing in front of the line of battle, trying to lead.
This tactic to bring in retrospective legislation may end Labours reign in South Australia. Its already in trouble with over run budgets in projects, timeline blow outs and a disastrous health system.
These are just a few of my thoughts.
Play hard or go home guys.
GLTA
DYOR
NWH Price at posting:
$2.62 Sentiment: Buy Disclosure: Held
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