re: macquarie backing, page-66

re: macquarie backing Its hard to tell whether the announcement was a positive or negative, depends on the way you look at it.
The price that GMG had to pay to get the 300m was big, this is for sure.
what we dont know are the conditions the deal was sealed under, and what other options the management had. If GMG made this deal out of despration, then its definitely a bad news.
But if the decision was taken out of strength, that GMG was willing to pay high price now, to aviod bigger dilution in future distribution, and to keep the managment's flexibilty to move and take decision without banks influence, then the announcment is a great news.
Let us remember that if MQG exercised the options, GMG would get an extra 125M to pay further debts, which is somthing positive.
Things will get much clearer when we have a look at the results of the second half of this financial year.
One thing i can be sure of. If GMG goes bankrupt, half of listed company will do.