I think that many company's have as its core a national asset - you can go through the number of privatisations and how many of the assets have been snapped up by a combination of local and overseas investors.
IMO that is not the issue here although I do sympathise- The reality is that the Almond orchards of Timbercorp were sold to an overseas company and many other assets have been marked down and sold out from under MIS investors and for any state or federal government to intervene in Gunns would IMO just evoke the question why is this different from any other business in crises.
Against this backdrop the ATO just issue a revised assessment and ask for money - that must have stated the obvious - No-one ever looks to the consequences but just does and government actually dont look at the law of unintended consequences until they have happened and then try IMO to have a royal commission to find someone to blame. Why would it be different for Gunns. No way IMO the refinancing or recapitalisation can get up with Tax uncertainties as well.
IMO I expect the banks and management to reach a point somewhere that it is easier to use all the uncertainties especially the tax and its impact on getting finance to just allow them to decide to call in the administrators. Like in the others I also expect that the MIS investors may well carry the losses as will both the ordinary and GNSPA shareholders IMO. Someone like GFC will step up and get the assets at bargain pricing and as a private company will do what they are entitled to do.
It is a sad reflection on what we are facing.
I no longer hold the 200 shares having disposed of them for tax purposes.
GNS Price at posting:
16.0¢ Sentiment: None Disclosure: Not Held
