Moment of truth on debt covenants 30/09/2019

First things first. Congrats to those that bought in on the late March lows. Hopefully your smiling like I'm on a fat 250% since I last posted #: 37890010.

For me at least, it is prudent to start taking some some of the table. I also see a few headwinds on the horizon:
1. Economic headwinds. The whole car industry is currently in a lot of pain. Demand is just not there at the moment. I cannot quantify the impact of these economic headwind until the next results are out. So far go good though, as there have been no trading updates so I would assume ECX is still going well. Hope they learnt their lesson in letting the market know if things aren't going well. The shock and awe last March is not something ECX would want to repeat.

2. As you all are aware, ECX has received waivers from its funders (major trading banks and institutional investors) on its financial covenants over the period to 30 September 2019. I would hate to see what the call on those waivers are at this point and what the covenants looks like after the date above. Even so, from a funders perspective "A rolling debt gathers no loss" so in this respect I'm confident that it will be rolled over. What the covenants is going forward is what I'm worried about at this point. I guess we will find out soon enough.

3. Now that we have divested Grays what about Onyx, Eclipx Commercial, Carloans.com.au, Carloans.co.nz and areyouselling.com.au. I'm still of the mindset that our core business is fleet and novated businesses across Australia and New Zealand via FleetPartners, FleetPlus and FleetChoice. Julian Russell (New CEO) should be as efficient in selling the non-core assets as he was instrumental in purchasing them...

Good luck to all. Let me know If I missed a point for or against above.