Whatever its failings, the old board and management would not have rolled over as easily as this one at the first hurdle.
Destra survived the dotcom meltdown, and grew from a penny stock to a $100million market cap. Then Prime and its cronies got its hands on it. Couldn't run a pissup in a brewery you might think?
Think again.....
Prime have had a director on the destra board for 2 years and have controlled the board for 8 months so they can't pretend they didn't know what they were getting into. They knew exactly what they were doing...and don't feel sorry for them writing off $9m. They would have had to pay 10x that a year ago and had the problem of selling the entertainment assets.
Prime's next move. My guess is their last $2.2m loan was secured behing the bank's and that they'll reach an agreement with the receivers to pick up the bits they want for the knock-down price they were always hoping for, using the loan as a bargaining chip.
Selling the entertainment division is now someone else's problem, not theirs.
We've been taken for a very expensive ride!
DES Price at posting:
1.0¢ Sentiment: None Disclosure: Held
