hi debdeb, if kbc gets a waiver from the banks it would be an...

hi debdeb, if kbc gets a waiver from the banks it would be an immediate positive. This would give it a bit of liquidity and time to deal appropriately with their lending portfolio. Their current level of gearing is too high at the moment, after the impairment provisions, hence the emphasis on paying down debt asap.
What's reassuring is that the board have stated that they've got sufficient cashflow to service the debt, opex & repayments. Also an additional plus, is the management team's experience as well as the board's connections. It's probable that shareholders will get a capital return provided that further writedowns are minimal and that the banks renew the debt facilities. The AUD falling against the USD would be a big help as well. It's really a bet that will pay 1000% if they survive with minimal further writedowns, or a 100% loss at worst.