Good post horsetrader, im not in favor of selling Ad Bay, i think that needs to be a last option. if they can be free carried and retain 20% to 30% would be a great outcome but i doubt that is possible. They will be viewed as distressed and will always receive the worst possible deal/outcome until the cash flow issues are resolved, its definitely a double edged sword.
If they have to raise cash at this low price then it will be a terrible outcome for most holders, the dilution will be poison.
They are definitely a victim of timing as they were on track to finish Mungana processor and start ramping up much cheaper production when bang hits the GFC and it all unravels, revenue dried up and prevented them from completing the original plan which would have given them far more survival options if it had been built and ramped up before the crisis.
KZL Price at posting:
11.5¢ Sentiment: None Disclosure: Held
