gm recording, page-3

Much more than their reputation on the line 5hareholder. They are saying that they have 6-8 weeks to close something or will have to do a massively discounted rights issue. Of course, with 10,000 holders they may not be able to do that anyway. As I've said before its not very clear that there is value at the holding company level to enable an underwrite at any price.

Pl actually said that the easiest thing to do would be a dilutitive rights issue to "solve all our problems". Obviously that would keep all their payments going, He's basically saying that he's doing shareholders a favour by trying to avoid that. Hence why he got irate at times.

They have revealed that there are $6m of holdco costs on top of need to pay out Mashalla and I assume the RR loan. There is currently no cash at that level and upstreaming cash is restricted both by the bank and BEE2. The people who described it as a ponzi scheme have been proven correct to some extent. They really need to keep issuing at hold co level to meet those expenses. The global expansion was supposed to be the latest story for issuance I think but shareholders rejected it this time. (Nice try JB, your a nice man).

Most the asset sale options such as selling down CCL, a process which has already begun, don't seem very advanced. He said Vanmag was 2 weeks away. People will laugh but he seemed pretty convinced it was possible and I think that is the only realistic hope of avoiding the worst case scenario here.