If the company had tried to sell the main revenue arm of the business we may have got a return on our money. the business was beginning to turn around going from a 100mill$ loss in previous to a profit as at 30 June 08. Even when they announced the profit downgrade there was no inkling this would breach finance covenants. Hunter Hall would likely be pulling the strings with this due to being the key shareholder.
If the company was technically insolvent due to a breach of covenants or repayment schedule that should have been disclosed to the market when that first occurred. Also someone on this thread said the company was looking for a buyer weeks ago. If that is the case they should have informed the market of both issues. I cant help feeling there is something not right about this. It would be interesting if a HHL linked in someway organisation were to become the purchasers of the profitable parts of the company at firesale prices. Transactions will be forensically examined to establish all is above board.
Why make it easy for them. MAYBE ITS NOT OVER YET.
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