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2.53%

8.1¢ retail food group limited

Turnaround possible ?, page-5

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deluded

139 Posts.

32

07/03/18

09:57

Post #: 31579843
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Originally posted by Jimmy_C ↑

"The debt isn't overly worrying, considering there is cash in the bank, not a lot - but it is there, and there are still EBIT contributions."

The debt is very worrying. RFG has made it very clear they're at the mercy of their banking syndicate, and its capital structure will need to change one way or the other (either via an equity raise, or asset sales), even if they don't blow through the 3x EBITDA covenant (which i think they will). This is why the company is trading on superficially very cheap multiples (~5x EBITDA, assuming they can get close to the $90m FY19 EBITDA target, which they won't) - everyone knows a heavily discounted rights issue or other dilutive event (e.g. asset firesale) is coming, because the company has next to zero chance of complying with its reformulated banking covenants.

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Well this is what I've been wondering about. From RFG creditor syndicate perspective, what actions would they be looking at taking to get as much of their money back as possible?

I can't help thinking they are desperately trying to figure out how to get out with as much as they can in the shortest amount of time.

What methods could they use to extract value from the company while shareholders are left with the bag?

RFG Price at posting: $1.14 Sentiment: Sell Disclosure: Not Held
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(20min delay)
Last 8.1¢		Change 0.002(2.53%)		Mkt cap ! $198.9M

Open	High	Low	Value	Volume
7.9¢	8.2¢	7.8¢	$645.2K	8.073M

Buyers (Bids)

No.	Vol.	Price($)
1	299779	8.0¢

Sellers (Offers)

Price($)	Vol.	No.
8.1¢	435371	2

View Market Depth

No.	Vol.	Price($)
1	299779	0.080
4	507500	0.079
2	112632	0.078
1	12850	0.077
3	216196	0.076

Price($)	Vol.	No.
0.081	435371	2
0.082	996140	3
0.083	602000	1
0.084	273972	1
0.085	198227	5

Last trade - 16.10pm 19/06/2024 (20 minute delay)

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