jamwolf, CRH had $60m debtafter last results- a rise from...

jamwolf, CRH had $60m debtafter last results- a rise from previous results- and they have written down their NZ asset by $25m. Let's hope they don't have financial covenants associated with debt:equity, or they'll be having a breach (although they didn't mention any such thing in their market update, so it may not be relevant). They had $11m cash- enough to tide them over during this rough period? An V of about $160m if a renewed takeover bid came, and business os not doing so well. Outlook not so good either.

The bigger concern, imo, is the $70m+ claim against them (ANN late August). Is it serious? It could be, and PRW are gunning to get a return for holders of thefiled OPI PAcific Finance. PRW have already been successful in getting some money back. Charges have recently been laid against the Directors of OPI.

If CRH are succesful in not being found liable in this matter, then CRH will return to "value" (or value trap!) However, if CRH are found liable, and have to make a big payout, I guess they could be wiped out. Would they have insurance against something like this? I don't know- any accountant types/auditors around HC to answer this.? However, even if they are found liable in some way, it won't help reputational stuff for CRH, and could lead to furrther losses in business.

If you watch the trades, as I am, you'll see some bug holder is exiting the building. However, the legal claim has not seemed to have a huge impact upon trading, with the share price falling- only by a bit- when it was announced- and then rising again, so I guess people are just trading on the "value" proposition (with the share price still seeming too high, according to the market). If the legal claim doesn;t work in CRH's favour, it would be all bad for shareholders, in my view. I wonder when it will be heard. Is anyone in contact with the company, or has had past contact with the company? I can send an email inquiring about it if anyone knows a Director email.