See "2008 Annual Result Announcement and Business Update presentation" pg 6
2009 will be a year of continued restructuring.
– Business remains in a fragile position and the continued market weakness making the task difficult.
...
Proceeds of asset sales will reduce debt and continue to fund business operations.
***Does this mean Allco needs to sell assets in a buyer's market to pay normal outgoings?
***Is it really cash flow positive?
...
Significant cost reductions targeted.
– Operating expenses to halve from $330m in 2008 to less than $165m in 2009.
They are targeting cost reductions in one year equal to more than 5 x interest due on notes. What if cost reductions fall short?
If this is not a company that is likely to capitalise interest on its notes, I don't know what is.
Market price agrees with me.
Best of luck to holders.
See "2008 Annual Result Announcement and Business Update...
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Last
$1.61 |
Change
0.000(0.00%) |
Mkt cap ! $434.5M | |||
| Open | High | Low | Value | Volume |
| $1.61 | $1.61 | $1.58 | $104.7K | 65.78K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 818 | $1.59 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.61 | 5094 | 2 |
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