I have to disagree about the share raising. GIven the risk...

I have to disagree about the share raising.

GIven the risk profile of BOL, a share raising would have difficulty finding an underwriter, so it would have to be at a considerable discount to the current market price. My guess would be that to raise a decent amount of money you would neeed a 1 for 1 rights issue - which would probably be have to be done at about 5-7 cents.

Problem is aa 1 for 1 raise at 5 cents, you only raise 23 million at best depending on shareholder participation. The cashflow for second half of fy2013 is by itself forecast to be 17 million.

I reckon there are only two choices - good cashflow or insolvency. If there are not good cashflows, what is the point of keeping the business alive?

Given the solid cashflows of the business, it should survive until at least 30/06/2014 when you have 3 events - 2 large contracts with BHP finish and the NAB debt facility expires about this date and then after 30/06/2014 - who knows??