PWU, Cashflow was not $105m as you mentioned in your post, this is the amount of cash held at end of period. In fact net cashflow from operations was negative $134.7m. Also unrealistic to expect any capital raising to reflect net asset per security of 53 cents. Positives I saw were: 1. Balance sheet debt now predominately non current rather than current due to refinancing. 2. Whilst revenue has dropped slightly from operations, the overall margins have improved significantly, a very positive sign about the businesses. 3. This improvement is partly reflected in management EBITDA figures improving from $278.2m. to $318.9m. 4. Finance costs dropped from $385.5m. to $231.3m 5. Whilst the business can't remain in its current form as reflected by the overall negative cashflow, it does show that with a large reduction in debt (interest commitments)there is the possibility of a viable business remaining at the finish. Personally I would be looking for a few assets sales rather than shareholder dilution, but then again I am not management only a shareholder at the end of the chain. Pity I don't charge huge investment bankers fees & collect more fees on suggesting a capital market event. This entity would look a whole lot better with $2b less debt & retaining remaining income generating assets. Regards Buffett
AEJ Price at posting:
5.4¢ Sentiment: None Disclosure: Held
