hi Japan - I agree it certainly is pointing to WEG getting their...

hi Japan - I agree it certainly is pointing to WEG getting their 50% back - Let me clarify 100% of course I do not think the company is insolvent or ever was insolvent it is well run and they have always managed to raise cash when required.


Technical insolvency is an accountancy and cash flow issue which is completely different to being insolvent. In a private company it can happen if a cheque bounced from company A to company B who then payed company C in good faith creating a domino effect or any number of other cash flow reasons.

PLV would have produced their December quarterly accounts on the basis all the income and expenses were 100% theirs. Lets hypothetical say the $20m prepayment for shipments was received then paid to W.A govt for bond.

If WEG come back and say $10m of the money is theirs there "could "be potential that bond transaction creates a technically insolvent situation - No doubt it resolves itself in time because WEG becomes liable for 50% of the bond payment to the govt.

can anyone else point me to another company where this situation has happened ? can anyone else offer a credible theory as to why the half yearly financials will need to be audited and altered or why they are hinging on the current negotiations when they have already been released to the market ?