Thanks very much for your detailed answer Madamswer I can see...

Thanks very much for your detailed answer Madamswer

I can see why you are reading this as the creditors taking charge to some extent. They should be able to do it when you look at the balance sheet, but the track record so far suggests they will be needing to stretch much much further than they have recently.

I can also see why you say there is risk - looking at Nitro Drilling - recently purchased by Mitchell - MSV on ASX. They said they purchased Nitro for 16m, when replacement value of the assets was $84m. That would likely have gutted their owners or shareholders. However you would think drilling gear is a bit more specialised than most heavy lifting gear, so Boom might more easily sell their excess equipment (than Nitro could).

The amortisation schedule seems extremely harsh to me, especially if they are not making any Op CF. I'm looking at the Dec 14 and FY 14 financials, and their purchases of plant and equipment have been about $14m pa. They say they have sold about $20m of equip in FY 15. This may only be a net +$6m inv CF. There are obvious positives - like that they made a $3m profit, which either suggests that they cherrypicked some gear that was in specific demand, or more positively, that there is market demand for their gear in general.

If the net operating cashflow equates roughly to a trading EBIT of $0 (you might well have a more accurate reckoning of this than I), management will not be easily finding the roughly $38.5m in 18 months based on recent form.

I'll be keen to see what sort of cap ex took place in H2 15.