I agree that the company needs recapitalisation and that should...

I agree that the company needs recapitalisation and that should be a primary focus. They also need to have some idea of the potential ITO liability. Now that there is some sort of guidance here a recapitalisation plan might be able to be established. It would be a miss for management not to have all currently due or potential liabilities detailed and where the proceeds of a capital raise will be directed. I believe that this is a regulatory requirement for a CR.

I think that the board needs to be confident that they can raise the money required. Let’s say that a CR went ahead and they only raised a fraction of what was required. If all that money went straight to the ITO would that be a good thing for shareholders.

I agree that settling the ITO issue could take a while and if there is a dispute then it could take years. Deferring a 3 million payment by way of dispute is not a bad thing cash flow wise and with recapitalisation should give time to get things kick started again. On review there seems to be some grounds for dispute on the VAT, I think the other two might be conceded fully or partially.