Solvency was a huge issue at the half year. There was an entire page dedicated to Norwood being a going concern using language I'd never seen in a report before. I imagine creditors would have needed to have signed a letter from the auditor that they would not make a demand on the debt for that statement to be made by the auditor. Auditors are thorough and require supporting documentation for their publicly released reports.
The only thing, and this is my opinion, the only thing keeping Norwood operating as a going concern is investors being prepared to tip in additional funds. The moment Norwood is unable to attract new investor contributions they will have to enter voluntary administration.
The whole point of VA is to preserve any value left. The company trades but with management of the company overseen by professionals who will then decide if the company is viable and liquidate or not. It doesn't necessarily mean the death of the company, but you can bet huge costs would be stripped away and maybe the company could be turned around and given back.
It may not be a bad thing at all, the company seems to have good product, just bad managers who can't monetise it.
NOR Price at posting:
2.9¢ Sentiment: Sell Disclosure: Not Held
