It was this loan that they reported on in Feb in the half yearly...

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Hingdog

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05/09/19

00:26

Post #: 40315993
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Originally posted by uncystu ↑

Apparently they've reversed that impairment - see the next paragraph on page 11:
"Following the novation, management have reassessed the loan's recoverability based on JBFG's ability to repay its debts and when they fall due and have reversed the previous period impairment made of $250,000 which has been taken directly to the profit and loss account."

Translation:
"We got absolutely grilled about this loan impairment at the last AGM and we don't want to get grilled on it again this year. Especially after old man McAuliffe promised to "take it forward" and get answers to shareholders questions about it! The transaction did look pretty dodgy so we thought best to reverse it and do an even bigger impairment to the loan to JBL to make up for it. JBL's not looking that good right now so hopefully nobody will question it."

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It was this loan that they reported on in Feb in the half yearly that I reported

On 10 July 2017, the Company advanced $450,000 to Capital Credit Pty Ltd (Capital Credit) (formerly Growth Point Capital Limited) (a controlled entity of the Investment Manager for accounting standard purposes) for a term of one year from the advance date at a 5% p.a. interest rate. On 24 December 2018, the loan was extended to 31 December 2020. Should the Company elect, the loan may be repaid wholly or in part by way of shares in Capital Credit. At 30 June 2018 an impairment adjustment of $250,000 was recorded in respect of this loan. At 31 December 2018 the carrying amount of the loan was considered to be fully recoverable

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How do you loan shareholders money to yourself then write more than half of it off as impaired?

HML Price at posting: $1.99 Sentiment: Sell Disclosure: Held
8 Upvote

2 Great analysis

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