Ann: Share Purchase Plan Oversubscribed, page-12

Hi all,  I believe the CR should be voted up.  Aside from cost issues associated with debt,  a while back I read about the effect of debt on management psyche.

With heavy debt, directors can be operating sub-optimal, feeling paralysed, constrained, risk averse (no money to risk), negative, a lack of creativity and innovation and who knows what else, leave alone motives for key personnel to quit.  Much focus will be on debt reduction opposed to investment opportunities or business expansion.  AH stated this in is reply to spid:

" Without significantly reducing our debt levels cashflow would have to be focussed on debt reduction rather than shareholder returns and dividends."

In our case I believe dilution is better than debt.  Debt is a massive problem.