Ann: Update on KIG JV, page-9

Going the way I thought it may BMW, the deal for the US $5mill in April could have been an indicator that someone may have known the $10mill was not going to be paid in May. I thought it was odd at the time making a deal for the US$5mill when the $10mill was due 15 days later or perhaps they were being pre-emptive. Without that initial US$3mill in April and only having $127k at the end of March they may have been close to insolvent IMHO.

Something I posted in an earlier thread which is worth reading.

Source: http://www.delisted.com.au/failed-companies/early-warnings Found this in another thread Early warnings of failure
In our experience there are often early indications that a listed company is about to fail. Here are some signs, there may well be others: Management and board strife which is often accompanied by resignations and departures. Lengthy "discussions" or "negotiations" with bankers or other financiers over the extension of credit facilities. Proposals to raise further capital, particularly in the context of ongoing losses or other significant impairments. A capital raising that is not underwritten, extensions to the closing dates for the acceptance of applications under a prospectus, or significant shortfalls of shares not taken up. Share sales by members of the management team or board. Late lodgement of financial statements*, or longer delays in filing financial statements, more so when there are indications that asset valuations are the cause. Auditors not signing the financial statements, delaying their sign-off or resigning. Failure to maintain the company’s website or shutting the site down. Financial statements showing: Negative returns on equity. Negative cash flows at operating level. High gearing. Low or negative NTA (net tangible assets).
Investor Alert Shareholders should be alert to these signs. Otherwise they may miss the opportunity to realise value for their investment. Companies often collapse suddenly and it may be some time before the reasons for the collapse emerges. Failure is usually attributable to bad management, but management just as often point to other causes. Shareholders are left to read the fine print of reports by external administrators or the post mortems of financial journalists to get the good oil."

We can only hope for all holders that the $72mill is forthcoming earlier than the anticipated 10 June.

DYOR My thoughts and ramblings only