The market update was really a commentary on what to expect at...

The market update was really a commentary on what to expect at the half yearly .Basically to prepare shareholders for the bad news therein,people don't mind pleasant surprises but are very resentful of a bad surprise (ala suncorp).
IMHO the bad news is out already in the market update,vcs and crownstone going by their example, and i don't think it was put there to mislead ,down by approx 25%.
Speaking to banks about restructure of its facilities and covenants,as a result of the asset impairment review and accounts preparation,suggests valad are very close to, if not in actual ,breech of existing covenants.
Restructuring of final payment due to Scarborough vendors is the one that sticks in my throat,maybe i am being paranoid, but to me,to dilute existing equity by giving vendors 19.5% of valad at what sp? and how much equity to 19.5%? and the remainder of amount owing at %? interest to 2012,raises a lot more questions then it answers.
Why bother to tell about a proposal that you ALREADY approve of,with no actual figures??? maybe you are about to deliver a horror half yearly and you think existing shareholders will be so shaken ,that management's recommendation of acceptance of the vendors proposal will be greeted by shareholders with any port in a storm mentality and therefore be approved by shareholders?
It looks like they are they are looking after their vendor mates at the expense of existing shareholders . The vendors ,who are obviously astute, because they sold Scarborough at the top of the market to Valad, would not put their money into a sinking ship,but may want to position themselves to take over a distressed ship at a low sp,time will tell.
I suppose until we see the sp proposed and amount of equity and % interest to 2012,it is possible it might be on really good terms for valad and shareholders,but given the state of valad sp and the terrible financial marketplace and human greed, i am doubtful.
Now i may be wide of the mark,i hope i am ,because up until now i have been impressed with how management have dealt with the mother of all financial storms,if you think i am wrong please correct me .