We can only speculate at this point. Will assets be written down, are we looking at negative cashflows for this half?
They had 340m of net borrowings in the prior half, EBITDA down from 66m to 7-19m in this half (If I remember right).
If the company needs to borrow to fund operations I don't like it one little bit. They need to do something decisive and I feel 30m doesn't put them in the clear.
If I was a holder I would be planning for a worst case scenario of 100m. It's guesswork though.
Maybe they will sell assets and raise less?
MRM Price at posting:
30.0¢ Sentiment: None Disclosure: Not Held