ttys inside run

The release by OLY on current status is most interesting.

At last it is disclosed that OLY entered into an agreement with TTY for a $2m loan,(on commercial terms with capitalisation of interest) on 29/2 and is due for repayment on 27/6. (I still cannot believe the board thought this was not a material disclosure item)

Within 10 days of the loan being executed TTY launched the onmarket bid. Clearly as part of its due diligence for the loan it must have gone through the numbers and valuations like a dose of salts and figured the timing was right to try on a takeover given its fragile state and the fact that it was just on the way up. Advantage of being on the inside!

What I do not figure is why Kiernan did not drive a stake through their hearts at the end of February. They must have been utterly insolvent at the end of February (net current assets over current liabilities of $110k at 31/12 and a burn rate of >$500k per month meant that they were going down. We know from TTY's bidders statement that they had drawn down $1m of this facility by 11/3 which sort of confirms how r**ted for cash they really were.

Maybe Kiernan is an old softy after all and decided to go on market and not string them out on the loan and wait til the ambulance chasers went in and steal it that way.

The other thing is Harts Range. Somewhere I recall seeing that they do not have 100% of this project, but cannot locate this in any search. What I do note is that they announced with much fanfare on 9 January 2007 (yes over a year ago) that they had approved to proceed with this project and were seeking financing. Well, 15 months later they are still looking and if they could not get it away last year, how in the hell are they going to do it in this environment of credit contagion?

Kiernans up to 37%, he is stealing it, but I suspect he is going to fire some more shots over the next few days. Lots of unanswered questions about what has been going on here.

Trouble is, this board has given TTY a huge inside run and have completely shot themselves in the process.