Slik,The AFR article didn't give too much new information. It...

Slik,

The AFR article didn't give too much new information. It mentioned the trading halt, and was hinting at a covertible bond issue.
It did seem to me to have a more positive tone than a negative one though.

I have posted the article below:
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Trading in Brandrill shares halted
Author: Peter Klinger
Date: 07/06/2002
Words: 239
Publication: Australian Financial Review
Section: Companies And Markets
Page: 59

Shares in West Australian drilling contractor Brandrill were placed in a trading halt yesterday while the company tried to conclude crucial refinancing negotiations with its financiers.
Market speculation centred on Brandrill trying to launch a convertible bond issue to remove some short-term debt off its balance sheet.

It would be a positive development for the embattled company, and its share price ran 4.5¢ higher to 17.5¢ on a volume of 2.7 million units traded yesterday before the lunch-time halt was applied.

The biggest net buyers in the market were Rivkin Discount Stockbroking, Tolhurst Noall and JBWere, while discount brokers were the main sellers.

Brandrill's managing director Jeff Branson was unavailable for comment and company secretary Matthew Whyte would not discuss any refinancing moves.

In a statement to the stock exchange, Brandrill said it remained in discussions with its financiers ``in respect of the continued financing of the company" and an announcement was likely to be made by Tuesday morning.

A convertible bond issue is likely to give Brandrill some much-needed breathing space at a time when questions have been asked of its ability to continue trading.

Based on Brandrill's half-yearly report, the latest publicly available information, the company has almost $45 million of interest-bearing liabilities, including $30 million of current debt. At the same time, Brandrill's cash burn rate was $2.4 million and its cash balance showed a deficit of $6.6 million.

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I sense that the note about the largest buyers and sellers is somewhat positive, that there maybe some knowledge among brokers that we don't know abut...its impossible to say though.
As a shareholder (relatively small percentage of portfolio) I have a biased point of view, although the tone of the above article suggests that the company is not gone just yet.
I am interested to hear anyone elses thoughts on this article.

Regards,
James.