I largely agree with what you have said here on the debt...

I largely agree with what you have said here on the debt situation. I agree they likely reduced the facility limit to take away the temptation to make more acquisitions.

I think the bigger concern (irrespective of how one reads the conversion from unsecured to secured facility situation) is the comment that HIL is working with the Banking Syndicate to 'refinance' the facilities by Feb-16. You could be right in arguing the banks just want to be rid of HIL and to read nothing else into it but with the syndicate containing 3 of the Big 4 finding another banker might be difficult. We'll have to wait until we see the 1H16 accounts to see if the situation has deteriorated.

As I said here in an earlier post (http://hotcopper.com.au/posts/16855778/single) one of the worst case scenarios could be the syndicate (if a refinance doesn't happen) waiting out the 6 month s588FJ period out before the loss-given-default scenario significantly improves.

What would be good to see (haven't seen anything in it so far) is the quantum of operating cash flow generated solely from continuing operations.