suspension, page-63

I was reading back over HST reporting to market since last FY result, and it seems amazing that they could end up at this point. After all, the situation at last full year was not that dire - and it still seems like they are making more than enough money to pay the interest bill, even if it has fallen a bit short of the EBIT interest cover.

I guess this demonstrates the risk of having significant debt and an EBIT/interest covenant, as when EBIT comes unstuck for any reason, the banks get to call the shots. Maybe when HST was running around doing lots of small jobs, the margins and sales were fairly predictable. However, with size, they have taken on a rather bumpier business, more heavily based on the property cycle.

Am left wondering if they were also squeezed by a few bad debts given the increase in receivables and overdues showing in the last annual report.

Anyway, good luck to holders - would think this could be good buying once re-financed.