investor relations response re weekend afr art, page-9

also, think of the domino effect that would be caused by banks turning their banks on a company that only six months ago had\has

gearing of 37%
stable capital position, and no breaches of covenants
Sufficient cash on hand to cover all FY09 expenses

fair enough VCS is a concern, but this debt is NON-RECOURSE.

Look what happened when Lehman Bros was allowed to fail, it set off a chain reaction, as nobody knew who was safe, who will be saved, if it can happen to them it can happen to us, etc etc.

Whilst the above example is on a MUCH larger scale, i believe the flow on effects of fear and anxiety will be similar. Look at our sector when CNP encounted problem.

So long as the banks capital is not in any IMMEDIATE threat
ie can still be recovered in a "fire-sale" scenario then it is not in their intrests to not support these companies

Hell look at BNB with negative equity !!!
although they will allow it to continue in order to sell assets under more favorable conditions, I still see it as banks trying to maintain some order in the market!