Ann: Financial Covenants , page-16

Jaaa,

Wake up!

Breaching covenants is not any less serious than being default on a loan. Companies like MFS went bust because of that.

It was NOT "just that the banks want to reset the covenants" as you said. The banks might want all their money back.

FEA had breached its loan covenants on 31/12/2009 for sure, and now the banks have given a 50-day death reprieve until 19/2/2010 - maybe just enough for FEA to arrange an administrator/liquidator.

The much fanfared "state of the arts" saw mill is just a big white elephant, which has never made money since day one. No one would want to have it, and Gunns has just closed some its own saw mills in Tas.

So, Something has to happen by 19/2/2010 - just 23 days left. Take action, or might be too late!