Call me crazy., page-7

Thanks @Jimmy_C!

I do note they have $8 billion of debt which is probably around $400 million a year in interest repayments... they really have little hope of paying it off through the operation of Vodafone Australia IMO.

This part tells me that the auditor's probably got signed statements from CKHH and Vodafone Group Plc to provide financial backing otherwise they would not have been able to sign off on the financial statements as a going concern.

"The carrying value of HTAL's investment in VHA is predicated on the ongoing financial support from both of VHA's shareholders. At 31 December 2016, HTAL's share of VHA's current assets defiency is $2,165.7 million.... The increase is mainly driven by reclassification of VHA's Syndicated Bifurcated Facility from non-current liabilities to current liabilities as the facility is due to expire within the 2017 financial year. Both of VHA's ultimate shareholders, CKHH and Vodafone Group Plc have confirmed their current intention to jointly provide financial support to enable VHA to meet its financial obligations as and when they fall due for a minimum period of twelve months from the date of signing the VJA financial statements"

Imagine if TPG had $8 billion of debt on $900 million EBITDA, yikes!!

Definitely there is no debate that CHKK and Vodafone Group Plc have much deeper pockets than TPG, but TPG vs Vodafone Australia's operation is night and day in terms of financial strength IMO - TPG far superior.

I'm inclined to agree with @Horsetrader1, there will be noise doubting TPG's project and Inaki Berroeta will be self-serving to keep his job for as long as possible by being optimistic about Vodafone's place in the market while downplaying TPG.

But, the big boys are going to hit for the funds might have a different take on it. It will be interesting to see if the debt of the Vodafone Australia JV gets refinanced, or if they have to raise equity to pay off the debt. would HTA shareholders tip in $2 billion through an equity raising for their share? They have a market cap of ~$1 billion right now. So dilution for VHA is likely while CHKK and Vodafone Group Plc tip in more equity into an operation that has been wealth destroying to date.... sooner or later the big boys have got to  face the music and realise it's prudent to cut their losses and stem the bleeding.