I had another read of the weekend AFR article (excerpts below).I...

I had another read of the weekend AFR article (excerpts below).

I must say that other than the fact that CBA used the strategic arm of KordaMentha, there is nothing new.

From my banking experience, it is common for banks to seek advice from advisory firms when a company is facing some difficulty. More importantly, it is the strategic arm 333 Capital, and not the insolvency arm anyway.

Also journalists are journalists, they tend to make news out of a rumour and sensationalise it. That will keep them busy.
Or even worse, as someone here mentioned, it will help their mates to get in at even lower price.

The last paragraph re VCS writedown of AUD530mln is not correct. The total VCS portfolio is now AUD610mln and recent sale suggested a recovery of around 78%. They also have 1st or 2nd mortgage in most of their projects. How can it be that big?

If the journalist can make a mistake on such a matter, how much reliance can you put on what he is writing? Think about it.

We've got to be discerning under the current environment and not to be fooled or tricked by such nasty journalists.


-----
Valad lenders call in some help

The strategic arm of insolvency firm KordaMentha is working with the listed Valad Property Group, which is negotiating with key lenders and director Kevin McCabe over a recapitalisation.

Accountants from KordaMentha's 333 Capital arm were called in by a lender, believed to be Commonwealth Bank of Australia. Valad recently flagged it was in talks with its major banks about its $1.2 billion debts.

Valad managing director Peter Hurley would not comment on the role of 333 on Friday, saying only: "KordaMentha is not working out of our offices. We are not in default. In this environment I'm very happy to be talking to our banks, because they are a very important financial partner."
KordaMentha refused to comment.

Mr Hurley would not comment on rumours that Valad co-founder Stephen Day, who stepped down as executive chairman last year for health reasons, was back at work.
Recently Valad announced write-downs of up to $530 million against VCS and Crownstone businesses.