suspension, page-59

Even if things aren't as bad as media speculation, this delay will send them bust. Suppliers will want to be paid quicker, builders will slow down payments and avoid full approval of claims. Net impact will be a massive cash crunch.

Some observations from the announcement:

Banks are supportive and want all customer and client obligations met. What about suppliers, or was that word accidently missed.

EBIT was 'around' $23M. Have they not finalised their first half results despite all the time that has passed. No wonder they're having troubles in convincing banks that it's worth investing in a recapitalisation.

Still, in my mind contracting is an up and down game, with good years and bad. In my view contractors that have consistent results have hidden reserves which they pull out in tough times. In fact on that basis to agree to earnings based debt covenents was a silly thing to do.

Commercial construction had been tough in their markets of late. It'll bounce back and anyone that gets a stake in a highly dilutive issue as speculated will in my view be getting a good deal in the long term.