Inventory write-down is cash burning. It is an admittance that you will not be able to recover the cash you have previously paid for inventory you are yet to sell.
They did sell stock during 2H16 but likely needed to do their Christmas purchasing twice when they couldn't move the stock they bought the first time. To buy again they needed someone else's money to do it (and the associated interest costs with it). Surely the need to get another $30m from MQG to buy Apple stock in Dec-15 (when they had $67m 'headroom' in their facilities five months earlier and had maxed it out when the Administrators came in in early Jan-16) is indicative of that.
DSH Price at posting:
35.5¢ Sentiment: None Disclosure: Not Held
