Reddrich hiI read fin review article today, perhaps same article...

Reddrich hi

I read fin review article today, perhaps same article you speak of. it was about the possibility of too high a multiple of goodwill on balance sheet (due to premium over tangible assets of companies bought in past) compared to retained earnings. AFR columnist of the view that debt covenants may be breached due to this (seems like drawing breath these days risks breaching ruddy debt covenants).

they pointed to WES as the leader of this, with likely attendant sp drop as div gets cut/suspended. i didn't see them saying there was tax issue, if anything taxation will end up a bonus (an impairment charge against goodwill cuts the reported profit and therefore company tax).

It's just company's turn in the cycle to slash div's to preserve cash (prevent cap raisings if poss) and pay down debt.