Interesting down ramping in your posts DLKNO.Perhaps you could...

Interesting down ramping in your posts DLKNO.
Perhaps you could go a bit further and explain where they are "very close to breaking some of their finance covenants".

The ASX release shows that they are very comfortable with local bank funding lightly leveraged and in place until 2011. There is no indication that they are in any way "very close to breaking some of their finance covenants".

Extract:

"Debt Facility
The Company’s debt facility totals $215 million. It matures in June 2011 and is provided by Commonwealth Bank, BankWest, St.George and NAB.
The key financial undertakings within the facility are being satisfied:
Covenant
Actual
Minimum SHF $225m
Approx. $250m
Minimum interest cover 2.25 times
>3 times
Maximum debt to assets 50%
Approx. 46%
Maximum provisions 10% of assets
Approx. 3%
Cash and undrawn debt as at 31 December 2008 was $11 million."

UBS has ceased to be a substantial shareholder but are selling up their assets worldwide - no matter what their losses it appears - it is a great chance to buy in to KBC while they are dumping imo.