Ann: Revenue Generation Recommences-KBL.AX, page-82

Romann, I am hesitant to say this but I think you are in over your head.

At some stage, all liabilities have to be repaid regardless of what name you may give them, Debts, Liabilities, notes, obligations, debenture whatever...it's got to be repaid.

The three ways a company can in absolute terms reduce debt is by paying back the liabilities from profit or by raising capital from shareholders or by selling down assets.

My argument is that this company will not make enough profit from its operations to reduce its debts in any material way. At best, the trade creditors are paid down and Quintanta outstanding amounts are reduced slightly before a capital raising is required or a sell down of its assets is made.

Please refer to the published material on the debt levels for this company..it's in black and white, no guess work required.

I agree that the market price reflects the risk profile, but that doesn't mean that it has tremendous upside, it just means that there is a huge risk here...remember as the man says...its better to pay a fair price for a good company than a good price for a fair company...ok maybe i didn't get that verbatim, but you get the drift.