Centres of excellence - restructure, page-22

The banks did not extend its payments schedule. The terms are essentially the same. There are additional fees due to re-categorising as a Term Loan rather than revolving debt facility. This recategory navigated around metrics that were breached due to short-term cashflow difficulties.

Obviuously there is a price to pay for the banks need to check viability of S&G business to underpin a Term Loan. Fees/Warrants.

Expect normal re-financing in a couple of years when back on even-keel (metrics).

New equity is not an option. If it needs cash because it can't service its debt then it can't provide the expected return new quite would require. Plus to make a meaningful dent in debt it would need to issue something like 2000m shares. That would require shareholder/ASIC approval. No chance of that happening.

I gave the above as a reason back in March when naysayers were saying CR is inevitable.

Thinking on, for those deep into S&G and worrying it can be cathartic to remember what has come true to date from what naysayers and talking heads were saying back in January - April.

Think about it. No CA papers served, no CR, no administration, no evidence of mass exodus, no cataclysmic closing down if compensation in UK, no evidence NIHL fallen in a heap, no management/board departing in disgrace.

In fact nothing but the company getting in with business and S&G appearing in government committees, TV adverts, videos, charity work headlines. All the stuff expected to see in a healthy company.

Ummm, *strokes chin and weighs up odds.

(Did I just do the asterisk thing? I'm banning myself for that misdemeanour)