was going through the books, page-3

Smarty,

It's good to see you examine the accounts now.

Are we right in assuming that you haven't done that before?

No one here should make comments on something they haven't done proper research on.

SB and yourself keep saying high debt, etc.

VPG hasn't got much due this year. Surely, they will need to repay Macabe as part of the Scarborugh acquisition.

The way I see it is that they may breach covenants at the next testing date, hence taking the initiative to involve the banks.

If we say that their acquisition of Scarbourgh is reckless and bold, and even stupid in hindsight, what we see now is that they come to realisation of the current credit market, and the economic downturn, and have been taking the right strategies to lower gearing and preserving shareholders' value - non-core/high risk asset sale, seeking recapitalisation, involving the banks at early stage, etc.

They obviously have witnessed what happened to CNP/CER and realised the power of lenders in such environment.

I don't know the details of their loan facility agreements and hence can not comment on whether there are potential covenant breach/default clause, requiring them to notify their banks if they see the potential of default/ covenant breach.

But I would say that it is more likely that not that there are potential default clause in the facility agreements.