Yes, you are correct Radge, that's why I termed it is "technically insolvent". Being unable to meet current creditors from cash is usually prima facie a good indicator of technical insolvency but...
The Corporations Act 2001 (Cth) (the Act) defines a person which is not solvent as being insolvent (s95A(2)). The term 'person' in this context includes a body corporate. The enquiry which should be made under the section to ascertain whether a company is insolvent is as follows: Is the company able to pay all of its debts as and when they become due and payable? To answer this question it may be necessary to consider the following:
cash reserves expected to be available at the time when debts become due;
- adequacy of working capital/cash flow;
- available (and reliable) sources of funding;
- the company’s ability to borrow;
- times and dates for payment;
- reliability of promises which have been made by creditors to pay; and
- assets available for realisation and the value they will realise (and whether this would involve the company in a voidable transaction or preference).
According to ASIC, the following are key operational and financial practices, which, in combination with other practices, indicate that a company is at significant risk of insolvency:
- poor cash flow, or no cash flow forecasts;
- disorganised internal accounting procedures;
- incomplete financial records;
- absence of budgets and corporate plans;
- continued loss making activity;
- accumulating debt and excess liabilities over assets;
- default on loan or interest payments;
- increased monitoring and/or involvement of financier;
- outstanding creditors of more than 90 days;
- instalment arrangements entered into to repay trade creditors;
- judgement debts;
- significant unpaid tax and superannuation liabilities;
- difficulties in obtaining finance;
- difficulties in realising current assets (eg stock, debtors);
- loss of key management personnel.
- Forums
- ASX - By Stock
- GMG
- dead man walking
dead man walking, page-16
-
- There are more pages in this discussion • 27 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GMG (ASX) to my watchlist
(20min delay)
|
|||||
Last
$32.56 |
Change
0.290(0.90%) |
Mkt cap ! $61.93B |
Open | High | Low | Value | Volume |
$32.20 | $32.79 | $31.73 | $122.6M | 3.780M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 10000 | $32.54 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$32.63 | 423 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 1000 | 31.900 |
1 | 230 | 31.700 |
1 | 500 | 31.610 |
2 | 105 | 31.600 |
2 | 62 | 31.590 |
Price($) | Vol. | No. |
---|---|---|
32.800 | 1000 | 1 |
32.900 | 138 | 1 |
32.960 | 499 | 2 |
33.400 | 200 | 1 |
33.410 | 93 | 1 |
Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
Featured News
GMG (ASX) Chart |
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online