RificiRe; ...."I personally believe they need to do a massive...

Rifici

Re; ...."I personally believe they need to do a massive capital raising, possibly in the order of $250mill to get back on track - just not sure if they would be capable of raising that amount of cash at reasonable terms."...

IMHO the asset sales already underway have adequately de-leveraged ABS & placed the company back on a similar financial basis as it was pre the sub-prime credit & inflation crisis. ABS should now be able to trade without the need for either a capital raising or further asset sales: debt has been reduced to a level that can be sustainably serviced given current interest rates, fees have been substantially increased so earnings should increase substantially, costs have been constrained, the need for childcare services is a no-brainer.

IMHO the savage market assault on ABS's SP following the $1.15 deal with MS is indicative of the likely future impact of any capital raising on the SP since equity would be diluted & questions raised about ABS's performance, seriously impacting ABS's SP. IMHO a capital raising would please those shorting ABS though.

4YIO - NFA