Nothing new here, was expected. They were running out of time...

Nothing new here, was expected. They were running out of time ahead of release of half year accounts.

The more important comment lies here ;
" Industrial has recently informed CMI Limited that it was negotiating a financial support package from major customers and the Victorian Government to enable the businesses to continue operating. A prerequisite of this package is that the loan with CMI Limited be renegotiated for term and interest payment. CMI has reviewed its remedies under the loan documents arising from the non-payment and has sought additional security prior to agreeing to a loan extension. This security has not been able to be provided at this time and the package has not been implemented."

So there "IS" a package in place, Directors are playing hard ball to grant an extension, no doubt wanting to either increase Hoffmeisters Personal Guarantee or a mortgage on one of his properties or time simply ran out ahead of releasing the half year accounts for the additional security to be in place.

A principal & interest repayment ( even a fully amortising P & I over 10 years ) is still in a good outcome for all. The USA auto industry is on the mend. The $17mio is not totally gone, auditors have to play hard ball or face litigation. There is also then the possibility CMI can sell off the receivable at a discount to a financial institution down the track