Some interesting discussion going on and definitely food for...

Some interesting discussion going on and definitely food for thought.

My thoughts, the NAB won't close the door on the company, sure they'd probably recoup 100% but it will be messy, costly and largely unnecessary. This company is profitable after all & did so through a shocking year.

What NAB will want though is the debt brought back to a sustainable level. This means either reducing the level of debt or increasing cash flow.

It doesn't sound like cash flow has come back quickly, otherwise the NAB would've happily rolled over. So this leaves the more likely scenario of reducing debt. Again, I don't think NAB will rush this process, just roll the debt over short term and give them the ultimatum to reduce to their specified level by a certain date.

There are a number of ways to do this:
1. cap raising
2. asset sales (ship, business division etc)

Ideally, the NAB rolls over and the business improves enough to reduce concern. But the NAB will want certainty and this likely means less debt. How they do that is up to management.