of all the companies you mention, only 1 survived ( Burns Philp )
common thread of all others was lack of cashflow / high debt. bpc had strong operating cashflow , and could repay debt , and had real assets.
if a company has enough operating cashflow and does not need its bankers to kick in dough to keep the doors open, it will have a better chance of pulling though.
extending loan terms is a different proposition than increasing lending without any clear timetable for repayment.
fge still needed the anz to pay the bills, and anz got to a point of realising that fge was going to burn cash for a long time, without any one else sharing the risk with them ( could not get cap raise away ) , so it called time.
suggest anz will burn some serious money here, not great considering they only became the main banker in july 2013.
board report to affairs will be interesting reading.
FGE Price at posting:
91.5¢ Sentiment: None Disclosure: Not Held
