News: EHL Emeco Holdings updates on recapitalisation and merger with Orionstone and Andy'S, page-10

Whether it is good news for youdepends upon your SP entry point.

From a quick assessment, debt increases from 393M to 605M (212M increase) reduced to 490M by debt for equity swap of 54%. In this they acquired plant to a fair value 166.8M.

The advantages revenue increase est EBITDA FY16 110M from 54M (inc 15M synergies).

Company is valued by report @approx 700M with 2400M shares equates to 29c/share.

Prior EHL had 267.3M as fair value for its plant this is now 434.1M. Previously with 393M debt the fair value of EHL plant was heavily discounted by the market (600M shares x $0.053=$31.8M). Market was not prepared to see that they would really find a solution.

IMO it needed to happen, I feel sorry that rode the SP down. Those purchasing in the last few months will present a good opportunity as it presents some upside from 8c (have read CR will be 8.7c as per Fridays AFR)

It will be interesting to see what happens now that the company will be in a stronger position with debt repayment and market opportunities.

GLTAH