from todays melbourne herald sun, page-23

Karl,
I think you miss the point. You are right in saying there is nothing wrong with debts. Many companies have larger debts and gearing than MFS. But, they did not report those debts. That is the issue - they did not report those debts. It is an ethical issue not a financial issue. Those in the know sold out, leaving ordinary investors to bear the brunt. Just watch, ASIC will be in, and may end up another (not Centro - worst). Hate to see mums and dads always end up losing to the big end of town. May have made a small contribution to Labor recent victory.