Manjapra, I generally agree with your opinion, except that no further announcements means that the company is probably in the position they expected on 3/6. (any other revised scenario would have required an announcment under the ASX rules)
They cannot be in technical breach of covenants until their accounts are released to the bank on 26/8...hence no announcement. I am expecting that they are in breach, but am guessing that they will announce a strategy to resolve it. This might be the asset sale you mentioned or it could be a capital raising or it might just be a renegotiated debt. The only problem I can imagine with this may be that this is really the CEO's family business and he could use the opporunity to indirectly privatise it again via discounted asset sale. (the ASX listing in Dec 07 seems to have been a bit of a disaster from the start)
The best case scenario is a non-renounceable rights issue to repay the ANZ debt. We could then all buy more shares at a low price and watch the price fly when the debt issues are all solved!
All we can do is imagine?....the real situation will come out with the accounts on 26/8!
SAV Price at posting:
13.5¢ Sentiment: None Disclosure: Not Held
