Too late for a "standard" capital raising to sort out the Dec-31 debt repayments, so either:
- CCU gets an extension from Magna which *may* give them time to get to nameplate capacity and / or see a rebound in the POS. CCU would then be able to do the capital raise at a higher price. REALLY GOOD.
- Magna puts the gun to CCU's head, puts CCU into Admin on 31-Dec, does a deal with the Administrator to pay out CBA and effectively dilutes existing shareholders to next-to-nothing. REALLY BAD.
That the CCU Board can put forward the last cashflow report, which effectively confirms that at the current POS, the company cannot meet its debt repayment obligations (contained in the same report), and then say nothing about it as it gets to within 5 weeks of being insolvent (again, on disclosed information)? STAGGERING.
That the ASX can issue a "please explain" if a Director submits a Change of Interest form a day late, but stays silent as the above plays out? BUSINESS AS USUAL.
CCU Price at posting:
7.2¢ Sentiment: None Disclosure: Not Held
