As part of the earlier refinancing of Wattyl Debt they had scheduled reductions of $22.5million by 30 September. With Friday nights announcement it looks like that reduction is pretty much in the bag. $10.8 was reduced between Dec and the end of April - and now another $14.1 can be applied with the proceeds of the property sales.
I don't think this reduction does much to solve Wattyls problems but it will get the banks off its back.
They will book a $1.85 million gain relative to book on these properties. It looks to me that they are still carrying their property portfolio on the books at 2003 valuations - looks pretty conservative but I don't have enough info to come up with a better estimate. I wonder if they have any more empty properties....nice to see they have sold one.
WYL Price at posting:
58.0¢ Sentiment: Buy Disclosure: Held
