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Couldn't have said it any better. SP now under 10c. IN ALL sorts...

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maxtiger

619 Posts.

28/01/15

11:12

Post #: 14651066
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Originally posted by demerger ↑

It is project financed so the project is owned by the banks, not the company. If you read previous press releases, the banks must approve any form of equity injection before it can proceed. The company said two months ago that it had put a proposal for $30m to the banks. Presumably this was not approved by the banks? Now they are talking about $60m in proposals they have, but they have always talked about how everyone is lining up to invest in this company. What happened to the $30m? Was it real?

The sad truth is that it is sinking and I can't see why anyone would invest in this company. The other thing to consider is that the banks might have just had enough and by not agreeing to any equity injection, they will just expedite the removal of the project from NewSat. So I suspect it is the banks that are working with Lockheed Martin to continue with construction, so that they will have a saleable asset to be disposed of that can still be launched in 2016. This will maximise its sale value.

Additionally, now that the company is in default with Lockheed Martin, it will presumably be in default in respect of its financing arrangement? The banks can insist on immediate repayment and it may well be that any equity injection will go straight to the banks. This company has a history of b*llshit announcements and not providing all relevant facts. I wouldn't be assuming the three parties are all working together on this.

According to the June accounts, the banks are owed $187 million. It sits on the books at $390m, but this will be gold plated and include all the largesse spent by management on things such as payments to Cresta and trips around the world that would have been capitalised against the project. I expect that a proportion of salaries and bonuses paid to management and normal company expenses would have been capitalised, so what is Jab1 worth in a fire sale?

This is a disgraceful situation that is completely the fault of management. They have not been unlucky due to some unforeseen economic event. The banks stopped funding the company due to the behaviour of the individuals in the company. You can read it in the company's own releases - they reference the insistence by the banks to improve their governance. You can only imagine what the banks believe has gone on there. NewSat had all the funding it needed, yet it has blown it.

It is beyond belief that the board still has any semblance of confidence in Ballintine to retain him. This just proves that Green and Ching are nothing but his cronies. They have also ignored their fiduciary duties in not sorting out what the banks told them to sort out and hopefully will face charges, but of course that will never happen. I expect we know now why the independent directors resigned. With the other cronies, Ellison and Abbott, also on the board at that time, the company was controlled by Ballintine and his mates.

A disgrace.

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Couldn't have said it any better.

SP now under 10c. IN ALL sorts at the moment.

June 30, 2014 - Smoke signals.

NWT Price at posting: 9.6¢ Sentiment: Sell Disclosure: Not Held
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Couldn't have said it any better. SP now under 10c. IN ALL sorts...

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