to be read in conjunction with my other two posts today
Reading Between the lines.
THERE HAS BEEN NO DETERIORATION IN BUSINESS
as ebitda forecast for year ending this month is still $288 million.THERE YOU HAVE BEEN TOLD.
THEY ARE LOOKING AT SELLING ONLY PART RATHER than the whole business-hence the need to alter some covernents such as profits being within 15% of last years.If you sell say one third then those profits go too.Otherwise you sell and then the banks can liquidate you under the existing covenants.
Your Alinta STAPLED SECURITIES are still owed a buck each from alinta,as they have not progressed the equitisation of the stapled securities debt.Crafty buggers.
This keeps the pressure on the banks to be accommodating as their loans are sub-prime (in a company without a rating such as Moody's)and are affecting the lenders credit ratings and as such their ability to borrow money cheaply.Hence the discounting before the end of the year.
AEJ Price at posting:
6.2¢ Sentiment: Buy Disclosure: Held
