MJ,you may recall that I sung Magna's praises for not taking...

MJ,

you may recall that I sung Magna's praises for not taking advantage of other shareholders in the last capital raising. In fact it was generous in my view by agreeing to underwrite the cap-raise for free, and did not seek to increase its relative stake at the expense of minor shareholders, nor make its investment contingent on anything.

The flip-side to this, is that Magna has no control over the company's bank.

Its not a question of CBA putting CCU over a barrel (in fact it too treated CCU well during the last capital raise), the company has done this all by itself. Its original target was 200koz /month by Dec 2011. We're coming up to 2 years past this forecast, without having gotten close to this target in a single month.


S28,

I don't follow your reasoning. All banks have "an option to move in" whenever the borrower fails to meet its repayment obligations. If the project is as good as you say, the bank does not have to liquidate the company to get its money back, it could simply appoint an administrator vary or extend its loan arrangements and in doing so, enter into a DoCA which would dilute all shareholders.

I'm not sure why you think "bank talk" is ridiculous .... the numbers are there to see. By all means, present a situation where the company doesn't run out of money or shareholders are not affected by a variation in loan arrangements ...