The directors must have thought that the business could still pay all of its debts as and when they become due and payable. It is more the cash flow than the balance sheet that would indicate problems. The March quarter should be a very good quarter for cash flow as the inventory and accounts receivable should decrease.
Luminous Wide Limited is a major share holder, the manufacturer and the provider of the LOC. They would know if the business was insolvent and I assume they would have injected more equity if/when required. Maybe the need for more equity is why the business is being sold ?
BUD Price at posting:
9.0¢ Sentiment: None Disclosure: Held
