Strathfield Limited (ASX:SRA) requests that a trading halt be placed on its securities pending an announcement by the Company regarding a material Company Update in relation to financial position, asset impairment and future direction.
In the independant report prior to merger/buyout it says;....
for financial reporting purposes, Strathfield will recognise a significant goodwill balance arising from the acquisition of CEG. In accordance with Australian Accounting Standards, goodwill is subject to an annual impairment review. If the Directors of Strathfield determine that the goodwill balance associated with the acquisition of CEG is impaired, the impairment adjustment will have a negative impact on Strathfield’s earnings;
So is this what has occurred?...and what are the impacts relating to the covenants on the GE Facility.
SRA Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
