Share price rally, page-10

I dunno, do you think the equity is worth $60m in a liquidation scenario? If the business shuts shop creditors (secured - c $4m from memory) and employees (notice, redundancy etc - this would be significant) get paid first, then unsecureds then equity holders at the back of the queue. They may have some property and 60 unencumbered Saab 340s (and a bunch of other light aircraft) but barely anyone uses Saab’s anymore so their fire sale value would be at a significant discount to their book value (I’m assuming no one is going to buy the business on a going concern basis...). The SP rallied 35% on Friday - presumably in anticipation of this announcement so it’ll be interesting to see if it rallies further. Before COVID took hold it was trading at ~1 so it’s fallen 50-60% which isn’t that bad compare even to the likes of Afterpay, Ardent, Village just to name a few. Even the Big 4 dropped like 40% so Rex’s fall hasn’t been that bad given its relative exposure to COVID.

Anyway, Monday will be interesting!