So the RCI directors sell China Coke & Chemicals (CCS) in November for $AUD1.5 million but the Chinese buyer is only required to pay 25% of that amount up-front (who knows if they eventually got the rest from the buyer).
CCS goes bust just a few months later and now the Chinese buyer walks away and fails to pay the outstanding loans.
RCI is left footing the bill to the tune of $AUD2.5 million after providing a letter of credit to the bank as security for the loans.
Nice deal guys.
RCI Price at posting:
47.0¢ Sentiment: Sell Disclosure: Not Held
