Pommytimbo - firstly great post.
I think your follow up post identifies one of the floors under this SP. Namely in the event that NLG defaults the pokies leases (and I think the overall pub leases) default to HLG. One of the vagaries of the pub sector is the enormous valuations of the intangibles - NLG has virtually no NTA's - and BNZ's security could pretty much evaporate with a default on the lease payments. The bank needs NLG to keep trading, if administrators are called in they act on behalf of all creditors albeit BNZ ranks first - but getting their money back will be long and painful and largely out of the bank's control. Better to ride the current management hard (they have a pretty good pub pedigree) and get them to sell the assets in an orderly manner according to the bank's timetable and valuations. You are spot on this is still a crap shoot - as I said in my only other HC post - this is definitely one for the punters.
- Forums
- ASX - By Stock
- NLG
- risk vs reward . is its musical chairs
risk vs reward . is its musical chairs, page-6
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add NLG (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online