risk vs reward . is its musical chairs, page-4

Finchy - the cashflow position is my concern - and unfortunately companies do not go bust becasue fo a lack of profit - it is a lack of cash. It is the repayments of loan principal which concerns me - I can't believe the loans in place would be interest only - given they are against leasehold properties as compared to freeholds - I hope I am wrong.

Maybe the banks have granted/will grant some form of moratorium on debt repayments but even the future looks somewhat bleak:

smoking ban
softening economy - less discretionary spending
credit crunch - meaning expensive and tight credit
Asset valuations falling

and one final disturbing feature from HLG's broke presentation - the pokie licences appear to fall back to HLG in the event of default - even though rents have allegedly been paid to date - the current quarter could be very very tight for the reasons detailed in my previous post.

I hope NLG survives - but who is in charge of this company's destiny ? Its certainly not the shareholders or the management - its the banks