Hey Dreamer,Just for you (well, and me) I've spent some time...

Hey Dreamer,

Just for you (well, and me) I've spent some time looking at CBD today. I think what you say is correct, but here is what I came up with.

"I've just had a quick look at CBD energy because it has just announced that their $280 Taralga wind farm has reached financial close. When it is built, I think their share will bring in about $2 million cashflow per year, at an absolute minimum, with the potential for considerably more than that. This is in addition to other profitable but low quality businesses. The company has a market cap of $5 million. The biggest threat to the company is that it becomes a distressed seller, well before it has a functioning wind farm, as it has $15 million of debt, in various forms.

Note 14 of the Half-Yearly report details their debt. I think they are in breach of their series one notes, meaning that in 2015 they will owe about $11 million on the notes, rather than about $7 million. This means that in 2015 it is likely that a debt of about $22 million will be due, as I understand it. I have decided to throw them in the "too hard" basket for now."