ASX-listed Vocation, which holds an ignominious place in investment markets for being the first real red flag for the private education market's business model, is expected to surprise the cynics on Friday.
Lender sources told Street Talk that a multi-pronged financing package is close to being completed, in a deal involving debt and equity.
More interesting is the suggestion that the deal may include a third element. While this was unconfirmed, it's thought some of the original founders may be involved in a settlement which could find its way onto the balance sheet, which is still stretched.
While it is a little bit of good news for the education provider, Vocation is by no means out of the woods. And the pain of $700 million being wiped off the market capitalisation in no time flat in late 2014 after Victorian authorities withdrew some public funding is still raw.
But the pointy-heads in finance are likely to be proud of the fact the financing package should match the net asset deficiency on its balance sheet, Equally, Vocation's banks are said to have remained supportive throughout the process and there's even expected to be some new lenders appear in the debt stack.
VET Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
