Comments on a few of your questions: Wouldn't it have made the CXG sales revenue and profit greater than it would otherwise have been ? Comment: shouldn't have if it was a arms length transaction
If Gemco / Cootes had taken on the debt to own the loco's / wagons would that have scared the market ? Comment: assume they already took on debt to purchase the loco's / wagons to refurbish. They already owned them. Further assume the sale to Greentrains was to free up cash to pay down the debt, to have access to the cash for new projects. Not surprising or unusual. Normally good practice.
What was the logic of Greentrains placing an order and accepting delivery of goods for which they had not arranged finance ? Comment: Assume they thought the project was able to be financed. Possibly the banks backed out? The global meltdown might be part of the issue. Who's lending money in this market?
Would it be normal for a public company to check the credit worthiness of a customer making such a material purchase ? Comment: Sure would IMO. But the measure of credit worthiness sure has changed over the last half yr
CXG Price at posting:
12.3¢ Sentiment: None Disclosure: Not Held
