The lack of detail being provided to the market in the announcements by FFF is a concern.
The major shareholders as directors would be privy to information not being made available to the public.
The debt covenant extension doesn't appear to be finalised with CBA as yet as the extension DATE is yet to be determined.
The wording of the announcement - "........is CONTINUING ITS NEGOTIATIONS with Australian Capital Enterprise regarding the DETAILS of the proposed capital raisings and expects to provide an UPDATE on the transaction and its STRUCTURE in the COMING WEEKS......" leaves a lot to be desired and raises more questions than it answers.
To me it looks like ACE may be trying to achieve better terms (a larger ownership percentage of FFF ??) to the detriment of the current shareholders. Are the directors (and/or current major shareholders) trying to insist that ACE stick to the capital raising structure as earlier announced? It could be that if ACE is playing hard ball then the current shareholders may be locked out of participation and the major shareholders may not like that.
The whole saga has been wallowing in a murky void for months.
This could end up dead in the water unless CBA itself has ownership ambitions. Perhaps CBA could then roll the loan portfolio into the recently acquired Aussie HLs.
Any thoughts?
DYOR - these ramblings are just MHO.
FFF Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
