A good example is Axsesstoday Limited, est 2012. It was a lender for equipment and vehicles to small and medium size business, audited by pwc, growing and in June 2018 it sold $50mil Bonds with a prospectus. Soon afterwards a new Australian Accounting Standard which required 'a provision to be made for expected losses' rather than writing off bad debts as had been the norm. When the new standard was applied, the arrears ratio caused a breach of covenants which could not be rectified. Administrators were appointed in April 2019. Bond holders received about 27 cents in the dollar, shareholders nothing.
SZL Price at posting:
52.5¢ Sentiment: None Disclosure: Not Held
