dead cat bounce!, page-26

Jintao

As an example read the following, whilst it relates to GPT and this forum is for GMG. It shows my point

"survival mode" implies it is on its knees, is this really the case for GPT or GMG

They have options (this relates to GMG also)

1. asset sales
2. capital raising
3. conserve capital by not paying distributions
4. Rudd Bank
5. Merger or takeover

I think a long way to go before we call in the "receivers" as you state.


GPT in 'survival mode': analyst

Shares in GPT Group fell to an intraday record low of 25.5 cents yesterday, as investors desert the listed property trust following a $3.25 billion annual loss, with one analyst saying it is in survival mode.

JP Morgan analyst Rob Stanton told clients: "GPT is in survival mode, translating into attempted asset sales, capex handbrakes, employee layoffs and dividend reductions."

"Deleveraging from its gearing starting point may not be possible if Australian rental deteriorate and asset sales cannot get reasonable to book.

"At the end of the day, is 40 per cent debt to total assets on a written-down Australian only portfolio of GPT's quality too high?"

"Probably not, but GPT will need to convince its lenders of that - who knows if those lenders will require another round of equity tipped in," Mr Stanton said.