The litigation against CFU's financial advisers and the ratings agencies was discussed at the open day. Effectively the way one should view this is bonus money if the litigation succeeds - I recall some discussion on the likley fee that IMF will take being 40% or so of any successful settlement.
Brendon Dow said he thought that the case they had was very strong, as evidenced by the fact that IMF even took on the case. However he said that no one could predict how long the case would run for, which depended on the depth of the pockets of those being litigated against - in particular the ratings agencies. Therefore one could not have any expectations of when this money may be recovered or how much.
And in a nutshell, yes, it was this lost money that precipitated the recent share issue. Prior to the full GFC meltdown the company maintained it had the cash to fund itself through to production.
CFU Price at posting:
17.8¢ Sentiment: LT Buy Disclosure: Not Held
