Ann: Hills Updates Financing Facilities, page-21

On what basis do you argue 'revenue is increasing' when in the FY15 annual report (p46 - continuing operations) shows:

Revenue (FY14 excl. other income): $448m
Revenue (FY15 excl. other income): $428m (4.5% decline)

Revenue (FY14 incl. other income): $464m
Revenue (FY15 incl. other income): $433m (6.7% decline)

If you assumed the Hostel business was acquired on 1/7/14 rather than 6/2/15 the FY15 revenue figures above would be $430m and $435m (i.e. still revenue declines compared to FY14).

Banks would have better access to the books than investors. A banking syndicate (CBA, NAB and WBC) providing a new $110m 3-year unsecured facility in Feb-15 (and HIL management saying it was comfortably meeting its financial covenants in the FY15 annual report (page 10)) and subsequently renegotiating it to a $55m secured facility less than a year later and wanting to assist HIL to 'refinance its facilities' by Feb-16 sounds like a banking syndicate trying to extricate itself from a situation it doesn't want to be in.

Hopefully my reading on this is wrong but wording of the announcement and subsequent ~25% share price fall since announcement (when All Ords and Small Ords indices have dropped only ~8% over same period) isn't a good omen.