When In Breach?, page-5

The Company is in breach. The remedy for breach is typically immediate repayment of the loan plus penalty interest. Creditors can take the company and sell its assets under a creditors administration but that process is costly and I would think the simple remedy here is for EOS to simply pay the remaining balance though new debt or equity investment.

The RNC loan ranks on equal terms to Export Finance so RNC cant unilaterally do anything. EFA are guaranteeing certain performance obligations under supply contracts (presumably the UAE contract). Further, there are significant cash deposits held against this obligation totaling $30m.

There are certain concerns that are raised here:
1) Why wont RNC just extend the loan- are they concerned re cash generation?
2) UAE contract and conversion of contract assets to cash- what is happening here? There was a contract asset of $130m at 31/12/21. I would think they still have a significant amount of cash still to come- what is happening on this contact? And why cant it be used to pay down debt?
3) Pipeline conversion- nil. Is there a pipeline at all here?
4) 350 employees in the US mentioned in the AFR. Thats a staggering number- what are they producing? Just an example of the financial mismanagement under BGs watch.