Looking through the recent announcements I have noticed a number...

Looking through the recent announcements I have noticed a number of interesting points:

29/7/09: John Gerard O'Malley was appointed as joint company secretary of Savcor 2 days ago. It is interesting that a John Gerard O'Malley was also appointed company secretary to Retravision (NSW) Ltd just before they went into administration in 2006. (Google Search: John Gerard O'Malley Retravision)

30/6/09: John Ingram resigned as chairman and as a director without any explanation.

18/6/09: A director sells 63,691 shares.

3/6/09: Wilson HTM who had just been appointed as the company’s strategic advisors, dumped all their substantial holding of shares on the market in a day, without appearing to care about the price...pushing the share price down from 30c to 10c. Perhaps if they had sold in small batches over the subsequent weeks they would have got higher prices? Why was there such urgency? Why didn't some of the directors or the parent company Savcor OY buy any of them?

3/6/09: The company announces that they may breach banking covenants and that all debt could become repayable.

Some other ponderings:
- In a legal sense a company cannot breach it’s bank covenants until the release of it’s financial statements. If there was a breach, the formal announcement and the next step for Savcor might occur after their results are released on 24/8/2009?

- If Savcor’s Australian Bank debt becomes repayable the company will need to raise around $15M in cash. Perhaps it would then consider a capital raising or an asset sale.

- Savcor is 65% owned by the CEO’s family through his company Savcor OY in Finland. The success of any capital raising would be dependant on whether the CEO’s company has the funds and is willing to fund a bail out. A 1:1 issue at 10c might raise $13.9M, if fully subscribed? Wasn't Finland one of the countries heavily affected by the Global Financial Crisis or was that Iceland?

- If a company is under administration or bank pressure any sale of assets or businesses would probably be at fire sale prices. Perhaps Savcor OY (CEO's company) would want to buy the business or part of it back at low prices (after floating it for $2 per share in 2007)?

- I wonder what the company meant in it’s announcement suggesting the best part of the business (ART) may be split off. What will they do with it once it is separated? Could this part of the business be sold separately?

- The company has not been buying back any shares since the announcement. Companies are of course not allowed to buy back when it could place repayment of any creditors at risk. Perhaps the bank is stopping any future buy backs until resolution of it's covenants?

Note: I hold Savcor shares and am not an advisor. Any comments are intended for general conversation/debate and must not be considered to be advise of any kind.