Looks like two banks have decided to eliminate their exposure and CBA has significantly reduced their own exposure to $15m with 1/3 of it repayable within 12 months.
Looks like they are more reliant on asset based lending which usually, though not always, occurs when you can't obtain cash flow lending (i.e. lenders not comfortable with the business being able to service the debt from ongoing operations but are quite happy they are properly protected by the loan collateral (in this case the recoverability of debtors) in the event of default) given ABL is usually a more expensive form of debt.
In my opinion the banks have done well to reduce their exposure to this business.
HIL Price at posting:
22.0¢ Sentiment: None Disclosure: Not Held
