The company has said that the current position is improved as the $4.75m residual borrowing was repaid in shares. The real reason for the poor liquidity position is the booking of the whole $15m EDF loans as current (deferred revenue). It is not clear why the accountants book the whole amount as due within 12 months when CCC say it is 4yr amortising facility. Either it is not effectively a 4 yr faciltiy or it is a mistake in the accounts.
The application to increase the $20m debt limit is interesting. Of course, the company no longer has that $20m working capital facilty (they still have to pay the royalties). It was supposed to to be refied by the announced $27m facility but was instead repaid part in cash and in shares. So no working capital type facilities at the moment and little chance of getting one given EDF has all the security. The emergence of the cash guarantees is tied to this, as they would best be provided under banking facilities, whatever those guarantees are?
CCC Price at posting:
63.0¢ Sentiment: None Disclosure: Not Held
