The more EBIT they lose with Doctor departures, the closer they get to breaching their covenants. I suspect that this thing will need to raise capital or will be bought out.
I highly doubt Westpac and ANZ will let this one die on the table (no pun intended) as they would get cents on the dollar in a liquidation - all the assets are intangibles and the customers are tied to the doctors.
IMO possible scenarios are: - capital raise - management buy out - outsider buyout
VGH Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held
