Ann: Hills FY16 Half Year Results, page-30

Good point - giving security without advancing further funds is subject to being void (with respect to circulating security) if the company goes into liquidation within 6 months of it being granted and the liquidation is one made by the court.

Whilst this has some time to play out if things deteriorated it is possible the banks wouldn't enforce until after the six month time period expires (say June 2016) to protect their security.

Whilst HIL could survive the fact they are making asset impairments with respect to businesses they have recently acquired indicates they paid too much for these businesses and/or run them so poorly from a cash generating unit review perspective the assets became impaired under HIL management stewardship.

Commentary that funding will be provided for WC purposes might reflect the new business model needs going forward (as stated by management) or could be that the banks are not prepared to bank the underlying business - only the working capital whose recoverable value should be greater than the facilities outstanding in the event of default going forward after the facility being 'revised' in April.