I'd say no. As a retailer the lowest point of indebtedness should have been just after Christmas sales period. If the banks were owed $140m at this point (after a clearance sale during Christmas to bring the cash in) with a facility limit of $135m, their indebtedness was only going to get worse due to restocking and payment of other supplier debts.
Whilst report is still to come from Adminstrators the media commentary after the collapse also shows DSH had obtained a $30m trade finance facility from Mac Bank in December to bring in Apple stock. Can only imagine this was done because the banks wouldn't extend further funds. Apparently the banks were furious because they were not consulted and DSH was intending to divert $10m to pay down the Mac Bank facility in preference to the banks secured facility.
Basic tenants of credit policy says that even if a company can service a debt and provides sufficient security for a facility (which it appears DSH couldn't do anyway) that if you have serious questions about the character of the customer (such as they would try to rip you off) you don't lend to them. Getting another loan and trying to pay it before the banks would have shot all trust in management IMHO (outside of the financial considerations).
I wouldn't be surprised if it turns out the Mac Bank facility went through Mac1 Pty Ltd bc Ferrier Hodgson are not appointed to this entity (suggesting HSBC and NAB were not aware of it before they refinanced WBC's facilities in Jun-15), nor was its acquisition ever disclosed to the market (or mentioned in the FY15 accounts after it was bought in Sep-14).
DSH Price at posting:
35.5¢ Sentiment: None Disclosure: Not Held
