what is going to be worth , page-5

hi feeny

the debt calculation might be a bit out

money from the capital raising will not increase assets but will be used to reduce debt
$5.6 - $1.3 = $4.3

assets = $10bn
debt = $4.3bn
equity = $5.7bn

nta = $1.295

gearing = 43%

is that better?

I think that might be closer to the real figure

so if the covenant across the group is 55% the company's assets would have to fall to $7.8 before it would be triggered

4.3/.55 = $7.8bn

that would give the company $2.2bn in headroom
assets would have to fall in value by another 22%

so all up assets would have to fall 42% (the 20% mentioned plus another 22%) before the covenant would be triggered

anyway this is all back of the envelop stuff