All it means is that Kagara have settled 'all' cash debt as part of the refinancing arrangement. They started the quarter with 10 mill in cash. We already suggested 5 mill had to be used for redundancies etc and other restructuring costs.
They had 68 mill in cash debt. ANZ have obviously required that this debt be settled before a new arrangement is made. So the 68 mill of LL sale proceeds was used to settle debt.
This would make their immediate cash pretty tight to just a few mill but also guarantees the success of refinancing as now they have 0 debt.
No biggie.
KZL Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
