TIM are at the point whereby there is a series of debts maturing...

TIM are at the point whereby there is a series of debts maturing in around 9 to 10 months time in which the banks are expecting TIM to offload the three properties which have long term lease agreements in place.

Before I start it has been reported that TIM need to offload the properties to survive, this partially true however its due to the existing agreements not because the banks are likely to call up the outstandings.

TIM have offloaded these tyeps of properties before, the example used is the TPF units.

The issue TIM have is that the three properties are being sold on a 'lease back arrangement' which effectively TIM are passing the costs onto the growers. If TIM sell the land at a prices the banks want, the yeild the purchaser will attempt to achieve will effecively mean additional costs to growers, thus diminishing the net result to growers. If this is so, the grower wont continue paying their annual rent and maintanance costs and the whole thing blows up.

Obviously the board have taken the approach at a difficult time, perhaps this would have been better back in July however its easy to say this with the benefit of hindsight.

The decision to move away from sales this year can be viewed in two ways, positive or negative. Positive to the fact that they are going to focus fully on their existing assets and drive the return to investors/shareholders. Negative as you may view this as a dead man walking, just making the poor investors bleed a little more.

Either way the bigger concern is the consequence and impact this will have on the rural areas.

a. Will jobs be maintained, we can only hope so.
b. Will stop the overinflated cost of water rights due to no further plantings. Just think how this wouldnt be a problem if we had the Ord Water system, $2.70 a megalitre compared to over $900 her.

There is a real chance that TIM could be under extreme pressure over the next 9 months if atleast 1 or 2 of the properties are not under contract, let hope for all concerned that the board have taken the most appropriate action.

DYOR