earnings guidance, page-8

To take a simplistic view I always look at a companies Cash Flow statement at the operational level.

This gives you a basic view of how the company is faring at the hard core base level of running their day-to-day business.

It includes (only) the cash flow from running the business:
Receipts from customers
Payments to suppliers & employees
Financing Costs
Interest received
Interest Paid
+/- income taxes.

At this level the company experienced a cash outflow of $7.5mio.

Now obviously, if a company is going to reduce their debt it has to come from the cash flow of their day-to-day business or selling off assets.

CDR's banker's will be looking for a reduction in their exposure, so where is the money for this going to come from?

Cleary CDR are going to either (a) lift income and/or (b) reduce costs - was this issue addressed at the AGM (wasn't there so I don't know)?

In a nutshell, CDR are bleeding cash at operational level and are going to need a massive reversal of fortunes to change this.

As for a rights issue, well it is fair to say that equity is a lot more expensive to service than debt, and is generally only undertaken as a last resort. A rights issue will immediately devalue the current share holding of existing holders.

The fact CDR have had a series of "vultures" going over their books, and they all said "no thank-you" must tell you something?