karedis getting out, page-15

Carmello - you may be right - but the banks are in the predicament where they will lose money if they appoint receivers - whilst LVR's are comparatively low (60-70% I believe) if receivers are appointed they will get little value - readign the HLG broker presentation - there is an implication that the pokie licences revert to HLG - so what value is there in NLG as a shell with pubs that (albeit on a short-term basis) are not performing.

Sure debt serviceability is not there right now - but there is a committment to reduced debt - eg rights issues - and I am sure we will see some sales coming through very soon.

Its a dog's dinner - but markets do change and whilst the management has a proven commitment to reducing debt - ie committing additional cash the bankers may have little choice. the boards and management team are very experienced so its it better to pull the rug and get very little or hope for an effective turnaround and/or some take-out plan (public to private).

I'm not saying this is risk free - far from it...but the bank are stuffed either way atm IMO and probably don't want to appoint (bad for NAB SP - and banks are paranoid atm)