No white knight here.

This is my opinion on what may happen to Olivers if it continues to run out of money as they are now doing as per their latest ASX press release.

The Directors will be faced with a dilemma:

They may be saying shall we call in Receivers/Liquidators now/soon as we cannot trade if we are insolvent. Or we may face jail time.

Or shall we try and get a Private Equity company or say another fast food company in to fund Olivers with another round of cash as we cannot go to existing shareholders again for more money.

The problem with both Private Equity companies and another fast food company would be, they would be extremely unlikely to touch it.

The reasons are:
1. They would be left with existing shareholders who may make life very difficult for them. We just want to stick to healthy food they may say. As you can see from the postings they can't seem to get their head around that Olivers doesn't make any money.
2. They would be stuck with all the leases and liabilities that go with it. In other words they could not close a site with out huge costs, leases,staff etc.
3. They would also be stuck with all the wages, holiday pay, superannuation, redundancies and worst of all any staff disputes and court issues, which may arise and would be unknown and the cost and time of this would be enormous.
4. They would have all the tax liabilities and issues which may arise.
5. They would have all the ASX costs and compliance issues which to a small company are a nightmare.
6.There are another multitude of other items i could mention.

Both Private Equity and another fast food chain are much better off dealing with a receiver/liquidator and pay a "cash $ amount" for what they want. They can then re-negotiate the rents with landlords. Start afresh with staff and have new employment contracts with no retrospective liabilities. Start afresh with new suppliers etc etc. No ASX compliance issues.

The receivers are usually ruthless people (they have to be) and they want to be paid, they know tax has to be paid, staff have to be paid. Forget the suppliers and shareholders there is usually nothing left for them. Look up historical data on this subject.

That is why I would out now and with any money i could salvage buy my wife a new dress and take her to dinner and discuss how we need to be much more careful with our hard earned Mum & Dad money from now on. Not follow other peoples dreams without a close hard look at the financial data and ask can this company make money.