Greentrains was planned to get a business with some 60-80 million in assets without puting up much capital due to the Coote influenced Coote Insutries drawing down its soul for a largely unsecured and unfunded order.
And the rub is Coote would have done OK when Geentrains listed.
If it was such a good deal why didn't Coote Industries do the deal itself and then spin off a new listed associate.
Now Coote Industies might be well and truly stuffed. The banks may be reluctant to roll anything over. No need for them to take any exposure to a Greentrains # 2 should someone come up with a bright idea. Plenty of other lenders out there arn't there!
The rail services ideas was ok. May be still doing well but no one knows what the ex-Greentrains profit is.
I was damm lucky I didn't buy.
He could have done a much better job.
CXG Price at posting:
10.7¢ Sentiment: Hold Disclosure: Not Held
